How to Use Competitive Forces Model - SWA

How to Use Competitive Forces Model - SWA - How to use Five...

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How to use Five Competitive Forces Model: Southwest Airlines It is time for Southwest Airlines (SW) to resume its long term growth rate of 14%, and then expand to 20-25% a year because SW is positioned financially and operationally to gain market share as other airlines struggle to remain viable. SW has many options to grow more quickly. The options include 1) Entering up to 100 new cities that want a SW presence 2) Addition of flights between SW pair-cities currently without SW air service. 3) Increase the number longer than three-hour flights (these are the most profitable) Southwest’s growth prospects will be analyzed using Porter’s Five Forces Model. Rivalry among competing airlines- Southwest’s airline competitors are reeling after the attacks on 9/11. Only Southwest and JetBlue are profitable. The other carriers have lost billions in value and will find it difficult to expand. The industry will likely consolidate. Less profitable routes & flights will be eliminated.
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How to Use Competitive Forces Model - SWA - How to use Five...

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