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Souwth West Airline

In: Business and Management

Submitted By Zamh
Words 751
Pages 4
Zahra MohammadHosseini
BBUS 438
Professor Ceri Nishihara
Case 1: Southwest While Southwest has a very unique model that has kept them profitable for decades, they still struggle to grab a large portion of the market share. Southwest, historically, has stated their biggest competitor is the car and no other airlines. While this may have been true many years ago, it isn’t true anymore. Consumers already prefer to fly over driving as they understand the cost and time benefits of it. By southwest not focusing on other airlines as competitors they are losing out on gaining competitive advantages against them. Another key area where Southwest differs from other airlines is that you can’t book a Southwest fight through any other avenue than directly through Southwest. While this saves southwest on commission fees and allows them to keep their fares lower, it can be a disadvantage for Southwest as many consumers like to compare rates on travel websites. By Southwest not having a presence on those travel websites, they are losing out on a large portion of the market. With these shortcomings, Untied was able to pull back out of a market and focus their efforts elsewhere without worry of losing income or market share. Strengths:- Number 1 in on-time service, baggage handling, and customer service-Avoids major airline hubs in large cities to improve turn time- Creative marketing campaigns make them stand out to consumers- Commitment to a fun environment for both employees and consumer | Opportunities:-Expansion to more cities- International flights-Visibility on travel sites- Expanding into offering “long haul” services | Weaknesses:- Only focus on “short-haul” services- Do not have visibility on travel sites- Dependent on single type of aircraft (Boeing 737)- Only offer coach seating | Threats:-Direct competitors such as United- Economic recession- Increased fuel…...

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