Southwest airline bcg strategic environments matrix

Number of flights- This is another consideration as clients may be interested in travelling back and forth even within a day.

This left room for other companies to set up shop in the international travel market. Southwest does not offer any type of in-flight meals. With weaknesses the company should re-evaluate their pricing strategy so as to keep up and maintain a stable working financial base without losing value from their customers. Many companies such as AirTran Airways are offering a 0. There is a decline of 11 percent in airline companies with funding leading to used planes being able to be 0. Using internal analysis would benefit the company in streamlining operations as they would endeavour to use their strengths and turn around their weaknesses so as to create opportunities in the chains of activities in the delivery of operations that they would undertake. Financial Outlay The company has steadily over the last few years been losing out on revenues and reduction in profits. To increase opportunity and reduce the threats the company should employ the strengths of the strong financial outlay and engage in profitable projects to cover revenue base, and take advantage of the strong customer loyalty base available for the company. With relation to the strengths that the company possesses in the domestic airline industry the company can be assumed to be working in a cost leadership generic strategy Porter Southwest offers in domestic only, no international flights. Introduction of ultra low cost carriers like Spirit and Frontier.

Among the first challenges to entry the company was faced with was the Wright Amendment which was created in Top-ranked web site in customer satisfaction among 0. For the company this is a strength because consumers and the market get to enjoy quality services as well as at an affordable price making it one of the most profitable companies through opportunistic costs.

strategic alternatives for southwest airlines

Employee loyalty: the company has a strong, fun-loving, employee-oriented culture. Finally the company possesses the reputation of a good cost effective and dependable airline.

southwest airlines bcg matrix

Systems such as booking, route paths as well as their company itinerary are available online and they have improved efficiency for the companies. The company is now one of the United States biggest airline companies, offering low cost fares to their clients.

Through projects such as Evolve, which involved the redesign of the cabins on the craft to accommodate efficient waste disposal as well as reduce weight from waste on the craft. Technological Analysis The company in recent years has engaged in technological advancements by keeping up to date with the current systems that are being introduced everyday integrating them into their systems. In the aviation industry, this was affected by the high costs of fuel and other products. Increased demand for cities that are currently by without Southwest airline flights such as New 0. In Southwest has three hundred and eighty- 0. In recent times airline companies have been conducting mergers and acquisition arrangements amongst each other mainly due to the high costs that are found within the industry. The strength therefore for the company comes from working with the numbers of passengers that it ferries between destinations on a low cost policy. Thirty-seven consecutive years of profitability — till 0. Each year, airline companies such as Delta and Northwest in are declaring bankruptcy leaving 0. With the repeal of the Wright Amendment with the last clause expected to be taken off in the company could easily take advantage of this opportunity and expand their market. This left room for other companies to set up shop in the international travel market. Decline of 11 percent in airline companies with funding 0. Unlike the Ansoff matrix that fits all the criteria as stipulated the failure by one strategy to meet this disqualifies it from being used. Kelleher is responsible for the decision making of Southwest Airlines so it is going to be interesting to say the least when he takes a lesser role in the daily business of Southwest. Ansoff Matrix As depicted in the image below the Ansoff matrix is a simple model that helps a company identify the opportunities present for it to engage in and come up with a good strategy by looking at the factors of market penetration, product development, market development and diversification by comparing to the products offered and the markets available.

With weaknesses the company should re-evaluate their pricing strategy so as to keep up and maintain a stable working financial base without losing value from their customers.

The company could engage more in mergers and acquisitions to take advantage of more international flights to more destinations. This challenge is not as significant to the company as since the other available forms do not meet the demands of the market in comparison to the demand for air transport.

From humble beginnings in , this airline with only four passengers per flight, and airhostesses wearing hot pants and white go-go boots, has evolved into a leader Ansoff Matrix As depicted in the image below the Ansoff matrix is a simple model that helps a company identify the opportunities present for it to engage in and come up with a good strategy by looking at the factors of market penetration, product development, market development and diversification by comparing to the products offered and the markets available. Rather than We are the chocolate producing company, producing many varieties of chocolate. Weaknesses 1. We provide equal employment opportunities and a stable working environment with room for advancement 9. The company services a large fleet of aircraft well suited for the job of transporting passengers and in addition has a very low rate of cancelled flights This threat poses the challenge for the company by them losing out on the market share which stands at Southwest utilizes only the Southwest has a reputation for great customer service 0. Increased demand for cities that are currently by without Southwest airline flights such as New 0. Southwest only flies one plane, the Boeing The company could engage more in mergers and acquisitions to take advantage of more international flights to more destinations. First airline on the web 0. Competitive Strategy: Techniques for analyzing industries and competitors.

In order to protect our world for future generations and uphold our commitments to our Employees, Customers, and other Stakeholders, we will strive to lead our industry in innovative efficiency that conserves natural resources, maintains a creative and innovative workforce, and gives back to the communities in which we live and work.

The reason for this is that these mergers increase the capital revenues for the other companies enabling them to invest more in profitable investments and thus more profits.

The managerial relations with the government of the day are okay.

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