Business - Management
Internal Analysis and SWOT Analysis
Southwest has been a major inspiration to other low-cost carriers, and its business model has been used many times worldwide. The competitive strategy that they use joins high levels of employee and aircraft productivity with low unit expenses by reducing aircraft turnaround time predominantly at the gate (Bamber, Gittell, Kochan, & von Nordenflytch, 2009). When doing an internal analysis and SWOT Analysis it is important to look at a company's tangible and intangible resources.
Southwest Airlines has tangible resources of financial resources, physical resources and human resources. In 2099, Southwest Airlines had revenues over ten million dollars. They are the largest airline in the world by boarded amount of originating passengers boarded. They are the third-largest passenger fleet of aircraft amid all of the world's commercial airlines. They have carried more passengers than any other U.S. airline since August 2006 for shared domestic and international passengers according to the U.S. Depart of Transportation's Bureau of Transportation Statistics. And lastly they have had 37 consecutive years of profitability (Fact Sheet, 2010).
The company's physical resources include the planes that they fly. Southwest Airlines flies only Boeing 737 jets. It is the biggest operator of the 737 worldwide. They have been a launch customer on three models and are the world's largest operator of two models. Southwest has selected to exclusively fly the 737 because of cost benefits. Southwest's fleet includes 544 aircraft. It holds firm orders for more than one hundred additional 737s as well as over one hundred options and purchasing rights for succeeding aircraft. As of July 1, 2009, Southwest's fleet had an average age of approximately ten years. Southwest flies only the Boeing 737 because of maintenance and training cost savings. In addition, the aircraft is adaptable enough to be profitable on a variety of long-haul and short-haul routes. The 737's rapid preparation and turn-around time permits Southwest Airlines to utilize its aircraft more hours per day (Beyman, 2011).
Southwest Airlines feels that their employees are their single greatest strength and most enduring long-term competitive advantage. There are many jobs at the airline. These include people on the phone and on the plane. There are also those who fly the plane along with those who work in the hanger. All of these positions are vital because without any one of them the airline could not run. At Southwest Airlines people have the freedom to be creative, dress casually and have fun while on the job. Employees also enjoy free travel privileges, and have great benefits, like profit sharing, matching 401(k) and medical and dental insurance (Southwest Airline Careers, 2010).
Southwest Airlines intangible resources include technical resources, intellectual resources and goodwill. Southwest has done a lot over the years to enhance their technology while keeping their costs low. The first thing that they did was to become ticketless. They became electronic or ticketless back in the mid-1990s, and today are almost ninety to ninety five percent ticketless. Customers who use credit cards are entitled to online transactions, and today Southwest.com bookings account for about sixty five percent of total revenue. In the late 1980's they put into practice a reservations and ticketing system. Before that, they used cash registers (Steinert-Threlkeld, 2010)
As they integrated their ticketing and reservation processes, the boarding pass was left manual. So until 2003, all customers would gather in the gate area and exchange their boarding passes. Then they began handing out boarding passes from multiple points in an airport. Later, they added boarding-pass generation via Southwest.com. Now they have self-service kiosks, and were adding functionality to those units last year (Steinert-Threlkeld, 2010).
In an industry that frequently loses billions of dollars, Southwest Airlines has an unbroken string of thirty one consecutive years of profitability. The Southwest Airlines way is to develop high performance relationships based on shared goals, shared knowledge, and mutual respect among all levels of management, employees, and suppliers. Southwest relies so heavily on high performance relationships and shared goals, shared knowledge, and mutual respect among employees,...
Louis Vuitton -- Case Study Key Issues To formulate a plan for the expansion of the brand into the international market. The planning and execution of strategies that would help on long-term commitment of support in the international market, depending upon different parts of the world. The formulation of strategies and plans in cases of economic down times and interference of government policies. Assess the performance of the company by taking into consideration the
Appendix External Analysis 1. PESTEL Analysis 1.1. Political 1.1.1.Global leaders use of social media impacts the political landscape and is able to influence operations. (C-142) 1.1.2. Several high-profile world leaders utilize social media platforms to address their followers, the most notable being U.S. President Donald Trump who tweets regularly to announce global interactions with other political leaders. They also have high interactions and reach with the global community: U.S President Donald Trump had 30.13 million
The virtual world model -- is a variant of the community business model. For Linden Lab, this model works directly. The benefit for ABC is not to derive revenue from the community, but to become a part of the community and develop the two-way traffic flow. It remains to be seen how viable this tactic is as an eBusiness strategy as it is an emerging concept. It is essentially
The reason why they look at the location is to ensure, that the property is properly zoned for such a business and to see if there were any other problems, with the liquor license at this location. Next, you want to take photographs of the locations itself. This will be included with the application that you are submitting to the Department of Consumer Affairs. In general, the more pictures that
SWOT Analysis: Bed & Breakfast Bed & Breakfast Since 2011, a new quaint bed and breakfast business in California's central coast opens, called Charmed. Located in Santa Cruz, California along Monterey Bay, its meager beginnings wowed the locals, which created quite a demand. However, Charmed became concerned, as another nearby bed and breakfast business opened shortly thereafter. Undoubtedly, the wine country area was an ideal location that parlayed many other quaint and
Red Cross SWOT analysis SWOT analysis was invented in order to help companies in defining their strategies in the backdrop of the dynamic and increasingly competitive business environment. Its name was derived from the fact that it is used to examine the strengths as well as weaknesses of a given firm.It are also used to examine the opportunities as well as strengths of an organizations external environment. Meyer (2003) indicated that
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now