Study of Southwest Airlines Essay -- Business Management Studies SWOT

Study of Southwest Airlines1. What three things impress you most somewhat this caller?One thing that really impressed me about Southwest was their abilityto maintain high profits and maintain a high customer base even afterthe September 11 attacks and 2002 recession. some other impressiveattribute is the fact that they can keep their prices genuinely low andaffordable to customers. The last thing that really impressed meabout Southwest Airlines was their charge system. Their mottothat employees are equal to upper management seemed to me a riskyapproach, but for Southwest it was a very brilliant and profitableidea. 2. Do a SWOT analysis. (See Exhibit 1 for analysis)STRENGTH* Major profitable air duct company since September 11, terror attack* Lower prices than competitors* Friendly service* trivial air travel between two cities* Upside-down pyramid management system* Plenty of daily flights* Entertainment for passengersWEAKNESS* Only flies to 29 states* Cannot compete with large r airline companies* Does not utilize a hub system* No first class seating* Smaller seats compared to larger airline companies* Only uses Boeing 737 AirlinesOPPORTUNITES* Slash Prices even more to eliminate competitors* Add first class compartment* Expansion into new geographic region* Add flights in areas where rivals were rude(a) back service* Expand airline fleet to fly longer distances* Add longer, non-stop flightsTHREATS* New entrants* Increased rivalry* FAA rules and regulations* Government Regulation* Land-based travel much(prenominal) as Amtrak and Greyhound* Other airline companies duplicating Southwest Airlines? dodge3. What grade would you give Southwest management for the job it has d whiz in crafting the company?s strategy?I would give Southwest management an A grade, for the reason thatSouthwest Airlines is described as an upside-down pyramid. The uppermanagement is at the bottom and supports the move line employees, whoare the experts. This is Herb Kellehers unor thodox leadership style,in which management decisions are made by everyone in theorganization, not just the head executives. The company is describedas not having much of an emphasis on structure instead, employees areencouraged to think freely without constrai... ...mselves and stress the quality of these frills (such as roomierseats). Others, done use of flight hubs, are the only ones who caneconomically serve remote customers.Another weakness of Southwest Airlines is its preference for Boeing737s. Being limited to one type of airplane leaves them with littleflexibility when the model receives a bad reputation or a criticalflaw is discovered. Such would be a costly opine for this company,who has used only one type of airplane, and in the face of a diresituation would face a costly venture of finding replacements orcounteracting bad publicity.A possible threat is that since Southwest Airlines strategy hasproven so effective, it will be duplicated by its competitors to a demo whe re it would lose originality. This could result incompetitors offering low rates to the areas covered by Southwest andbeyond, making Southwest Airlines range and limitations more obvious.It would be very possible in the near future where a big company, withits hubs (something Southwest does NOT have), would basicallyintroduce Southwest Airlines low-cost model to a wider market, advance and outdoing Southwest Airlines.