Loading presentation...

Present Remotely

Send the link below via email or IM

Copy

Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.

DeleteCancel

Southwest Airlines

Mgt 471
by

Adrienne Denney

on 26 September 2013

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of Southwest Airlines

Main Issue:


With the U.S. air travel market stagnant and larger airlines consolidating into more dominant competitors, should Southwest continue with its traditional strategy of growing organically and conservatively?
SWOT: Internal
Weaknesses:
No international flights
Completely dependent on one supplier (Boeing) for their aircraft
Only fly to 69 airports in 35 states
Can only book flights through SW
Amenities
No market segmentation
SWOT: External
Opportunities:
Segment offerings (first class, business class)
M&As
Domestic expansion
International market
Booking options through travel websites
Increased retiree population resulting from baby boomer era
SWOT: External
Threats:
Fuel prices
More airlines trying to adopt a low cost/ cost-efficient strategy (Jet Blue, etc.)
Increased competition with Delta and American Airlines resulting from their M&As
Increased air security
Decreased air travel/demand for other travel methods
Political:



Economical:



Social:
Terrorism
Health care
Government regulations
Unemployment rates
Fuel costs
Nationwide recession

Changes in demographics
Price sensitivity and other lifestyle changes
PESTEL
Technological:





Environmental:


Legal:
Fast growth in technology (e.g. In-flight WiFi, mobile boarding passes, automated check-in kiosks, etc.)
Teleconferencing; business meetings via Skype, etc.
Jet fuel emission standards
Green movements
Wright Amendment
Unionized workers
Porter's Five Forces
Threat of entry:

Threat of substitution:

Bargaining power of buyers:

Bargaining power of suppliers:

Rivalry between competitors:
Low
Medium
Low
High
Very High
VRIN
Value

Rarity



Inimitability



Non-substitutability
Low fares for non-stop flights have high value
Low fares without making passengers pay to check bags is rare
Low employee turnover
Threshold resources and competencies can be imitated by competition, but Southwest's organizational culture and atmosphere cannot
Employee dedication is non-substitutable
Method of travel may be substitutable
Core Competencies
SWOT: Internal
Strengths:
Turn around time
Low costs and high efficiency results in low fares
Organizational culture
Operates mainly with non-stop flights
Bags fly free
The mission of Southwest Airlines is dedicated to the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride, and company spirit.
Recommendations
Short-term
Enforce culture
Gain market share

Long-term
Growth by M&As
- Jet Blue?
Jason Boos
Danielle Cody
Adrienne Denney
Sam Guffey
Justin Pratt
Sara St. John

PESTEL
Full transcript