Southwest Airlines Swot

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Strengths: Southwest has many areas where it possesses strength. Besides having records for the best baggage handling, the smallest percentage of canceled flights, best record for on-time performance, superior customer service, and the least amount of customer complaints, Southwest is also known for being the only consistently profitable airline since 1973. (Cole Creative Group). In addition, in 2010, Southwest was the “market share leader in domestic air travel in the United States.” (Thompson and Gamble, 2010) However, perhaps Southwest's most important strength is the company's employees. Through selective screening and hiring processes to find employees with personalities that match the company's objectives, as well as fun and engaging…show more content…
The first area of opportunity involves the retirement of the Wright Amendment on October 13th, 2014. This amendment restricted what cities Southwest could service within Texas and a few surrounding states with non-stop flights. With the expiration of the Wright Amendment, Southwest is now free to offer non-stop flights from Dallas' Love Field to any other city. According to data released for Dallas Love Field, air traffic was up 37% in November 2014 from November 2013 which is mostly attributed to the retirement of the Wright Amendment. (Jean, 2015). This opportunity will allow Southwest to provide more flights in the…show more content…
In addition to the constant threat of current industry rivals finding ways to match Southwest's strategy of being a low-cost provider, as was the case with Braniff International matching Southwest's $13 fares (Thompson and Gamble, 2010), there is the threat of new companies trying to enter the market. However, new entrants are not a relatively strong threat since there is much retaliation from current companies in the market as evidenced by the legal battles that ensued when Southwest attempted to enter the airline industry. (Thompson and Gamble, 2010). Another potential threat lies in the cost of oil prices. Rising (or falling) oil prices, which in turn influences fuel prices, directly affects Southwest's ability to keep costs low for consumers depending on what type of hedging instrument, or contract, Southwest is using to protect itself from drastic changes in market fuel

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