An Understandable Yet Perfect Southwest Airlines Case Study SWOT Analysis

Southwest Airlines is one of the most common airlines in the industry, especially in the US. The company can provide exceptional customer service, making them a good airline for passengers. Also, consumers can book their flights at affordable prices. With this, they get an advantage over other airlines. We will discuss its SWOT analysis since we are talking about Southwest Airlines. It is to determine various factors that may affect the company's performance. So, if you want to study more about the topic, read the post about Southwest Airlines SWOT analysis.

• Part 1. Introduction to Southwest Airlines
• Part 2. Strengths of Southwest Airlines
• Part 3. Weaknesses of Southwest Airlines
• Part 4. Opportunities for Southwest Airlines
• Part 5. Threats to Southwest Airlines
• Part 6. Recommendation: MindOnMap
• Part 7. FAQs about Southwest Airlines SWOT Analysis

Part 1. Introduction to Southwest Airlines

Southwest is among the big giants in the airline industry. It is known for its good customer service, unique business model, and affordable fares. The airline's founders are Rollin King and Herb Kelleher (1967). They transformed the aviation landscape with its point-to-point service and low-cost model. Also, the company focuses on delivering excellent customer service. This has resulted in a powerful brand and a good market position. Plus, Southwest Airlines is continuing to make an effort to expand its route network. It is to enhance its fleet and develop innovative technologies. Until now, the company has been creating and offering great services to its consumers.

If you want to view the Full Southwest SWOT analysis, you can rely on the diagram below. After that, we will discuss each factor to understand the diagram.

Get a detailed SWOT analysis of Southwest Airlines.

Part 2. Strengths of Southwest Airlines

Lower Cost

The best strength of Southwest Airlines is its affordable fares. With this strength, more consumers choose the company for their flights. It is because the company can offer affordable prices to its passengers. With the airline’s Low Fare Calendar, consumers can book tickets starting at $45 for a single flight. Also, this strategy has helped the company get the title of the best low-cost carrier for years.

Good Customer Service

Aside from its affordable offers, the company has good customer service. The airline’s commitment to offering positive customer service is its strategy. Exceptional customer service plays a big role in the company's success. If they can treat their consumers in a good way, there is a chance that they will be loyal to the company. Another thing is that this strength will give a good impression to Southwest Airlines.

Financial Stability and Profitability

The company's business model can be profitable for over 40 consecutive years. In the airline industry, it is a big achievement. They created a wonderful and robust financial performance over the years. It is because of cost control, operational efficiency, and strong revenue. Also, Southwest Airlines has a great balance sheet. They have manageable debt levels and cash reserves. They can create and invest in economic downturns, growth opportunities, and more.

Part 3. Weaknesses of Southwest Airlines

Lack of International Presence

Southwest Airlines is dominating the US airline industry. They have a good reputation and can offer a good service, making them a popular company. But, its international presence is not good enough. The company only operates its flights within the United States. It includes Mexico, Caribbean, and Central America. The company can't grow and increase its revenue with these limited routes.

Intense Competition In The Industry

In the airline industry, there is intense competition. With this competition, it can put pressure on Southwest. Also, it may impact the market share and profitability of the company. The competition may hinder the success of the company. It includes fluctuations in fares, revenue, offerings, and more. With that, Southwest must stay competitive in this challenging situation. They must focus on cost control, good customer service, and operational efficiency.

Part 4. Opportunities for Southwest Airlines

Expansion of the Airline

Southwest Airlines is too dependent on the United States. If the company wants to grow to another part of the world, it must expand its business. They can establish and cooperate with other countries to build the business. With this, they can attract more passengers that may choose their airlines when booking a flight. It is an opportunity for the company to take action for its development.

Partnerships and Alliances

Another opportunity for Southwest Airlines is to have good partnerships and alliances with other businesses. It is to enhance its serving offerings, expand its network, and increase its customer base. Having a partnership with other airlines is the best way for the company. They can access new markets and routes that may help them to grow. Aside from that, the company must create an alliance with car rental companies, hotels, and tourism boards.

Improve Booking Process

Southwest added Paypal and Apple Pay to its website, mobile app, and more in 2019. It is an opportunity for the company to add and expand its e-payment option for its passengers. This way, passengers won’t find it hard to purchase flight tickets.

Part 5. Threats to Southwest Airlines

Competitors

One of the biggest threats to Southwest Airlines is its competitors. The company has many competitors, like Delta, Spirit Airlines, and American Airlines. This threat can give pressure to the company. It may also influence its sales in the industry. So, if the company wants to stay in the competition, it must consider the prices, customer service, good transportation, and more.

Increase in Fuel Price

Another threat to the company is the unavoidable fluctuations in fuel prices. If there is an increase in the price of fuel, it may affect the financial performance of Southwest Airlines. Also, consumers will get affected by it. The company will increase the fare if there is a high fuel price.

Part 6. Recommendation: MindOnMap

When creating the SWOT analysis for Southwest Airlines, it is better to use an online tool. With this, you don’t have to download any program on your computer, which is space-consuming. If so, we would like to introduce MindOnMap. It is a web-based software you can find on any web platform. With the tool's guide, you can insert all the factors affecting the company’s performance. The factors are the core strengths, weaknesses, opportunities, and threats. MindOnMap can provide all the functions you will need in the creation process. You can use shapes, various colors, themes, and text. Also, you can encounter various features when using MindOnMap. Moreover, the tool offers an auto-saving feature, which is helpful. Plus, the tool can give a 100% customer service experience. The tool’s main interface is suitable for beginners, making it convenient for them.

Part 7. FAQs about Southwest Airlines SWOT Analysis