Growth of low cost sectors 8 4 032 external threats

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Growth of low cost sectors 8% 4 0.32 External Threats The threat of strong and potential competition in the airline industry 15% 1 0.15 New government regulations and taxes 5% 3 0.15 Rising labor and other costs 10% 1 0.10 Costs for airline security is increased 5% 2 0.10 Large promotional resources from other competitors 8% 2 0.16 Total Weighted Score 2.46 Michael : I chose the strengths and weaknesses based on what Southwest Airlines was performing well in comparison to their competitors in the airline industry and areas they could improve in to
distance themselves from their competitors. The opportunities and threats were chosen based on separating themselves from their competitors by being one of the first airlines to fly commercially into Cuba and they have the potential to turn their threats into opportunities. The fact that Southwest Airlines started flying to Mexico, Latin America, and the Caribbean in 2015 is a step in the right direction (Southwest Airlines, 2016). Southwest Airlines actually created a new word "trans fare ncy" to describe their lack of fees that their industry competitors impose at will. No fees to check 2 bags, no change ticket fees, or even watch live TV. Southwest Airlines has generated a profit for 43 years straight (Southwest, 2016), a fact no industry competitor can claim. The scores for the weighted IFE and EFE mean Southwest Airlines has leveraged their competitive advantage with exemplary customer service which include “wanna get away” round- trip fare specials starting ate under $200 (Southwest, 2016). Southwest is known for their triple bottom line approach that contributes to their performance, the importance of their personnel and the communities they serve, and their overall commitment to efficiency. (2016). Southwest Airlines. Retrieved from: - company/corporate-profile

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