SWA Case Study – strategy
Zoe, BM19, the SWOT of SWA.
The SWOT analysis is one of the most important aspects to a business when it decides upon a strategic position, and the South West Airlines apply the analysis very well. The SWOT means strengths, weakness, opportunity, threats. The strengths of SWA:
The strengths means strong brand image, robust financial performance and focus on research and development. According to (Vijay G& Julie B 2002) that the SWA named the best low cost airline leader for the last 3 consecutive years. That’s the strong brand image of SWA. The revenue of SWA increase 8% to 5.94billion and the Net income increased 83% to 402million shows the SWA has perfect robust financial performance. The SWA focus on development and they became the 4th largest domestic airline in Australia. The weakness of SWA:
The product recalls and patient infringement all belongs to weakness. The SWA only allowed customers carry a small amount of freight and cargo that is the patient infringement. In addition to, the SWA only dependent on a single producer belongs to product recalls. The opportunity of SWA:
Such as smart phone and new retails store are the opportunities. The SWA has national and international market and they have new technology to open the door for new services, so it’s very advanced and fit the meaning of the opportunity. The threats of SWA:
The threats include intense competition, uncertain global economic conditions and decline PC sales. It’s also dependence on specific suppliers. The SWA lack of online booking but the online ticket reservation is keen competition. And there are many suppliers problem such as gas and oil price fluctuations. There also are some threats come from government such as make operations costlier. Compare to SWA….
Joan Magretta said
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