Industrial Analysis What makes this case interesting is the diversity in the competition makeup, its competitors are not only other airlines, but every other form of transportation, including other public transportation. Financial Analysis The company boasts of increased profitability within 33 years consecutively. A study conducted by the federal administration shows that the company boasted of having achieved $9 billion profitability in 2008 financial year. Southwest managed to remain profitable during the financial downturn of 2008 and 2009, and its CY2013 profits of $754 million were the highest recorded by the airline since 2008. Assumption/Challenges/Objectives Southwest airlines have been faced with issues related to environmental sustainability. This has affected its bottom line over time. In 2007, Southwest Airlines signed an agreement
Garcia 5 with the Federal Airline Administration to reduce its pollution levels. Basically, pollution is the main problem in airline industry today. This is because pollution leads to increased emission of carbon dioxide gases that increase global warming and also lead in the destruction of our ozone layer. The company has engaged in initiatives of tapping into clean energy such as using engines that require less fuel. The main ecological motive for the company is to reduce waste in its jets. Consequently, the company has sustainable social systems that help to reduce wastage through its operation. The waste management department is responsible for conservation of fuel and resources to avoid pollution of the ecosystem. The airport planning for Southwest Airlines is structured in a manner to improve the level of sustainability. The company also helps airports across the states in America to have sustainable development plans. The management also educates the employees on the need to increase integration with the local community members. Alternatives One of the main goals of Southwest Airlines is implementation of strategies that provide them with cultural and economic benefits achieved in the process of environmental responsibility. The company's management has integrated its profitability with efforts of protecting the ecosystem. Moreover, the company demonstrates inclusion of environmental and social concern throughout its business operations. This has also been extended to its interactions with the stakeholders. Southwest Airlines has several motives for implementation of sustainability strategies. To begin with, the principles of the company are motivated by the need to conserve ecology. In essence, the main drive to ecological conservation is energy saving. The company has an initiative of recycling energy produced by the airlines. Most of the airlines are developed using modern technologies, which gives them an edge over the traditional airlines.
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- Spring '14
- Management, Low-cost carrier