Southwest Airlines SWOT Analysis

Thursday, January 1, 2009, 11:32
Strategic Management
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Strengths

1. High capacity usage
2. Named the best low cost airline leader for the last three consecutive years
3. Diversity in upper management
4. Revenues increase by 8 percent to 5.94 billion in fiscal year 2003
5. Net income increased 83 percent to $402 million in fiscal year 2003
6. Dominates the short haul segment of airline industry
7. Fourth largest domestic airline
8. In 2003 Southwest posted a profit for the 31st consecutive year

Weaknesses

1. No international flights
2. No segmented seating
3. Dependent on a single producer
4. Lack of exposure towards online booking agencies
5. Four out of five employees are members of the union
6. Carry a small amount of freight and cargo
7. Do not use chat communication such as e-mail
8. Do not offer morning flights

Opportunities

1.National and international markets
2.Growth of older generation
3.Industrial research and development
4.Growth of Hispanic population
5.New technology opens the door for new products/services
6.Increased Internet advertising
7.Longer flights
8. Growth of business and leisure travel

Threats

1.Decline of leisure travel due to economy and terrorism
2.Competing online ticket reservation systems.
3.New government regulations that make operations costlier.
4.Demand for air travel has dropped sharply since September 11th.
5.Gas and oil price fluctuations.
6.Terrorist attacks.
7.Increased restrictions to limit noise (including restrictions on types of aircraft used and limits on number of operations)
8.Annual airline security costs have increased.

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