Southwest Airlines
Strategic Business Plan
Carlos Olvera
Ivan López
Wendy Galindo
Southwest Airlines
I. Introduction:
Southwest airlines performance in recent years has been outstanding compared to the rest of the airline industry. The company has maintained a stable increase of income, having year over year profitability since 1973, despite the fact that industry where it competes is characterized by being vulnerable to the recent downward economics and an intense rivalry between competitors.
Southwest is one of the US largest airline carriers in terms of domestic passengers boarded, serving for more than 70 cities in more than 35 states. It has one of the lowest cost structures in the domestic airlines industry, and consistently has been offering the lowest and simplest fares without losing its commitment of providing customers with the best experience possible by maintaining their emphasis on the value of people.
The challenge presented in this study is to plan Southwest’s continuing success for the long term, by taking in consideration new situations in the market place as well as the resources and competitive advantages that it has.
The information and ideas presented in this plan are confidential and exclusive property of the group’s of top students that are developing and presenting this plan.
II. Summary for the Business Plan:
This document includes an analysis of the External Environment where Southwest does business where we found important Threats generated primarily by Competitor’s Movements such as the traditional airlines offering new Domestic Low-fare Product Options along with their existing International flights, which is product category where Southwest does not compete. In Southwest’s Internal Environment we found important Strengths that generate competitive advantages, such as the excellent customer service and punctuality, employee’s that care about the success of the business, technological innovations and a fuel-hedging process among
Carlos Olvera
Ivan López
Wendy Galindo
Southwest Airlines
I. Introduction:
Southwest airlines performance in recent years has been outstanding compared to the rest of the airline industry. The company has maintained a stable increase of income, having year over year profitability since 1973, despite the fact that industry where it competes is characterized by being vulnerable to the recent downward economics and an intense rivalry between competitors.
Southwest is one of the US largest airline carriers in terms of domestic passengers boarded, serving for more than 70 cities in more than 35 states. It has one of the lowest cost structures in the domestic airlines industry, and consistently has been offering the lowest and simplest fares without losing its commitment of providing customers with the best experience possible by maintaining their emphasis on the value of people.
The challenge presented in this study is to plan Southwest’s continuing success for the long term, by taking in consideration new situations in the market place as well as the resources and competitive advantages that it has.
The information and ideas presented in this plan are confidential and exclusive property of the group’s of top students that are developing and presenting this plan.
II. Summary for the Business Plan:
This document includes an analysis of the External Environment where Southwest does business where we found important Threats generated primarily by Competitor’s Movements such as the traditional airlines offering new Domestic Low-fare Product Options along with their existing International flights, which is product category where Southwest does not compete. In Southwest’s Internal Environment we found important Strengths that generate competitive advantages, such as the excellent customer service and punctuality, employee’s that care about the success of the business, technological innovations and a fuel-hedging process among
References: Air Financials (2012). Statistics Analysis. Retrieved from http://www.airfinancials.com/ Hitt, M Fare Compare (2012). Retrieved March 10, 2012, from www.farecompare.com Grossman, David (2012) http://www.usatoday.com/travel/columnist/grossman/ Investopedia (2012) North American Industry Classification System (NAICS), (2007). U.S. Census Bureau. Retraived March 8, 2012, from http://www.bts.gov/programs/airline_information/ Southwest Airlines ( 2012) http://www. southwestonereport.com/mission-vision.php Southwest Airlines (2012 a) http://www.southwestonereport.com/financial-10yr.php Southwest Airlines (2012b) from http://southwest.investorroom.com/historical-stock-price Southwest Airlines (2012 c) http://southwest.investorroom.com/ Southwest Airlines (2012d) Statics. Retrieved March 7, 2012, from http://www.bts.gov/about/ Wikipedia (2012) http://en.wikipedia.org/wiki/Southwest_Airlines Wikipedia (2012a) VI. Bibliography American Psychological Association (2012) Apa Style Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2010) Strategic management: Competitiveness and globalization : concepts and cases Cincinnati, Ohio: South- Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2009) Strategic management: Competitiveness and globalization : concepts and cases Cincinnati, Ohio: South-