Final_Draft.docx - Running Head SOUTHWEST AIRLINES CASE...

This preview shows page 1 - 4 out of 20 pages.

Running Head: SOUTHWEST AIRLINES CASE STUDY – FINAL DRAFT1Week 7, Case Study Southwest Airlines – Final DraftStrategic Decision MakingAnusha MatamUniversity of the CumberlandsDr. Stephanie Thacker12/08/2019Executive Summary
Running Head: SOUTHWEST AIRLINES CASE STUDY – FINAL DRAFT2Southwest Airlines (SWA) is in the lead for the air transportation business; the company has many dependable customers that are bound to the SWA label (LUV). This Dallas, Texas-born company is a giant in the business from pricing to customer service and even with the enhanced promotions, it offers throughout the year. SWA has a brand image to support and all of this must be implemented strategically in order for this company to remain higher. SWA understands that there are many possibilities for the company to increase its market share. The Wright Amendment was a key factor in being able to expand into untapped businesses. New ideas are onthe rise at SWA, international packages will soon be extended with connecting flights to international carriers. (Chang, K. 2011).Southwest Airlines had a total operating revenue of 9.1 billion in 2006. SWA has many FAA regulations that must be followed which are closely monitored to ensure the safety of the passengers on board and employees as well. In order to remain highly competitive and continue to lead in “value-based pricing”, SWA must ensure efficiency in operations and marketing in order to keep its cost and prices low. Within the organization, there are many characteristics that SWA has; all uniquely defined as strengths, weaknesses, opportunities, and threats.SWA realizes that there are many opportunities for the company to increase its market share. TheWright Amendment was a key factor in being able to expand into untapped markets. New ideas are on the rise at SWA, international packages will soon be offered with connecting flights to international carriers. While expanding SWA should closely monitor programs such as the Business Select program to ensure success. Along with the strategy are many goals and objectives that have been identified (Southwest, 2017). Situation Analysis
Running Head: SOUTHWEST AIRLINES CASE STUDY – FINAL DRAFT31.The External Environment:Competition in the airline industry is strong. Southwest had many competitors to mimic their business model and their culture is also admired and emulated by corporations along with organizations from all walks of life. In competing against other airlines, such as United Airlines, Delta Airlines, and American Airlines are slowly coming on board with different incentive packages for existing customers or new clients, but their price still doesn’t match Southwest’s “low fares” 2017. Net income in 2017 was a record of $3.5 billion, an increase of 55.4 percent, year-over-year (Brown, L. 2019 and Southwest, 2017).

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture