blog




  • Essay / Swot Analysis of Southwest Airlines - 1421

    Introduction: Southwest Air was founded in 1966 when a group of Texas investors, including Rollin King, M. Lamar Muse and Herbert D. Kelleher, pooled 560,000 $ to form Air Southwest. . Incorporated in 1967, the company was designed as a commuter airline serving three Texas cities: Dallas, Houston and San Antonio. However, its operation was delayed for almost four years due to barriers to entry from competitors. Since its first flight in 1971, it has literally changed the rules of airline operations while becoming the airline with the most consistent profits. Southwest starts with the low cost strategy to penetrate the competition and gain competitive advantage. Adapted success strategies: With the aim of being low cost Establish international partnerships: according to USA Today article 2014; Southwest, which now carries more domestic passengers than any U.S. airline, began selling tickets for international flights on Monday, marking the start of a significant change for the national low-cost airline. From July 1, travelers will be able to fly for the first time. southwest to Aruba, Jamaica and the Bahamas, creating fierce competition with the large carriers serving these regions. But their expansion is slow. To accelerate their international expansion, they should adapt partnership, code sharing or joint venture with international airlines. A multi-country contract with a single international airline can save them time and research for numerous partnerships. Offer attractive loyalty or rewards programs: Although Southwest offers a rewards program, it has certain disadvantages2 which can be removed to make it attractive and build customer loyalty to the brand. . The biggest drawback of their reward program includes the covered network area and since they serve a very limited market, it cannot be fixed unless they expand to new markets. According to USA Travel News; The Southwest Rapid Rewards program is particularly beneficial for travelers based in the southwest United States who frequently fly to major cities in the United States, Mexico and less frequent flights: for example, if two airlines fly separately three and two times per day respectively on a shared route, their alliance could fly less than 5 (3+2) times per day on the same route. This could be especially true between each airline's main cities. In an interview question in a Center of Aviation article; For Mr. Camargo of GOL, the only LCC represented on the panel, the answer is clear. “Yes,” he says, “alliances have value for those migrating to the hybrid world, e.g. GOL, Southwest Airlines, Air Asia. It's nice to have access to global corporate accounts. Many high-yield passengers pass through South America. » Conclusion: Weighing the advantages and disadvantages analyzed above of forming an alliance in the form of partnership or codesharing, it seems logical to use this strategy to accelerate the expansion process and differentiate yourself. competitors who already offer cheap prices comparable to those in the southwest. Alliances can help maintain low-cost leadership across the industry while contributing to global expansion..