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southwest airline company

This document summarizes a case study on Southwest Airlines. It includes the group members working on the project, Southwest's actual mission and vision statements, proposed revised mission and vision statements, a competitive profile matrix comparing Southwest to other airlines, an internal factor evaluation matrix of Southwest's strengths and weaknesses, an external factor evaluation matrix, a SPACE matrix analysis, and SWOT analyses identifying potential strategies.

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1 Southwest Airline Company.
222 Group Members Name 1. Nabil, Syed Azmain 2. Asif, MD Imam Hossain 3. Rahman, Mohammad Ehsanur 4. Ashrak Md. Toha 5. Masrukh Rahman 6. Ali MD Yousuf ID 15-29729-2 15-28344-1 14-27423-2 15-29896-2 15-28906-1 15-29949-2
3 Mission Statement (Actual) The mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit. Vision Statement (Actual) To become the world’s most loved, most flown, and most profitable airline.
444 Mission Statement (Proposed) We are committed to quality service for the everyday person (1). Southwest provides air transportation to cities all around the United States (2, 3). We fly the most luxurious planes on the market with the latest technology money can buy (4). We competitively provide the lowest airfare price in search for the greatest advantage in today’s busy world (5). We provide the highest standards of safety for all our customers while still offering a reasonable price (6, 7). A portion of our proceeds are donated to various charities throughout the United States (8). Since our first flight in 1971, our employees have been the vital asset in making Southwest the most recognized airline today (9). Vision Statement (Proposed) At Southwest, we strive to be the new generation of flight transporters while providing luxury at a price anyone can afford.
555 Competitive Profile Matrix of Southwest Airline Company Critical Success Factors Southwest Airline American Airline United Airline Weight Rating Weighted Score Rating Weighted Score Rating Weighted Score Market Share Price Competitiveness Financial Position Consumer Loyalty Customer Service 0.20 0.25 0.20 0.15 0.20 2 4 3 4 4 0.40 1.00 0.60 0.60 0.60 4 2 1 2 3 0.80 0.50 0.20 0.30 0.60 3 2 1 2 1 0.60 0.50 0.20 0.30 0.20 Total 1.00 3.20 2.40 1.80 Considering total weight score of Southwest Airline company 3.20, American Airline 2.40 and United Airline 1.80. It appears that among the 3 company mention above Southwest Company is in better position than American and United. And then American is better position than United.
6 IFE Matrix-Strengths Weight Rating Weighted Score 1. Eighty-five percent hedge position on fuel. 0.10 4 0.40 2. Thirty-one consecutive years of profitability. 0.15 2 0.30 3. Three hundred and eighty-eight new jets. 0.05 3 0.15 4. Seventy-five percent of flights are E-tickets. 0.02 4 0.08 5. Growth rate higher than industry. 0.10 3 0.30
77 IFE Matrix-Weaknesses Weight Rating Weighted Score 1. SW has highest percentage of full-time employees leading to increased overhead. 0.05 2 0.10 2. Large cities (Atlanta, Charlotte, etc.) are without SW service. 0.20 3 0.60 3. They will not fly outside the continental United States, 63 cities and 32 states. 0.10 2 0.20 4. Does not provide first class service. 0.15 2 0.30 5. SW does not offer any type of in-flight meals. 0.08 4 0.32 Total 1 2.75 From the above total weighted average score is 2.75. It appears that the internal condition of Southwest Airline company is just about satisfactory position since it is not very much above the average score of 2.50.
888 Net Income 3 Rate of Inflation -2 Leverage 1 Technological Changes -1 ROA 3 Price Elasticity of Demand -2 Inventor Turnover 3 Competitive Pressure -6 Income/Employee 2 Barriers to Entry into Market -4 2.4 -3.0Environmental Stability (ES) AverageFinancial Strength (FS) Average Environmental Stability (ES)Financial Strength (FS) Market Share -3 Growth Potential 5 Product Quality -2 Financial Stability 4 Customer Loyalty -1 Ease of Entry into Market 3 Technological know-how -2 Resource Utilization 5 Control over Suppliers and Distributors -2 Profit Potential 5 -2.0 4.4Competitive Advantage (CA) Average Industry Strength (IS) Average Competitive Advantage (CA) Industry Strength (IS) x-axis: -2.0 + 4.4 = 2.4 y-axis: 2.4 + -3.0 = - 0.6 SPACE Matrix
999 SPACE Matrix 6 5 4 3 2 1 -6 -5 -4 -3 -2 -1 1 2 3 4 5 6 -1 -2 -3 -4 -5 -6 FS Conservative Aggressive Defensive Competitive IS ES CA
101010 S vs O 1. ThroughincreasedadvertisingonlineSWcanincreaseflightbookings.(S4,O5) 2.Usingapoint-to-pointsystemSWcanincreaseflightsforbusinesstravelers.(S2,O4) W vs O 1. Olderplanes mustadoptupdatedtechnologytoprovidebetterservice.(W4,O3) 2. Procurementofplanesofmodelssimilarto737canbebeneficial.(W5,O2)
111111 S vs T 1. Upgrade our fleet by adding 12 of the similar Boeing 717 jets in order to accommodate to the travelers desiring the luxury of a business class. These jets will be flown in the larger cities with more travel demand with an approximate cost. (S3, T2) 2. Expand the rapid rewards program to offer one reward point for every three purchases made on the Southwest website at least one month in advance. This will help Southwest in the booking processes so that there will be less complications and delays associated with last minute purchases. (S5, T5) W vs T 1.UsingthecodesharewithATAairlinesbeginofferingflighttoselectareasoutsidetheUSincluding (CozumelMexico,SelectCanadalocations,Paris,London,etc.(W3,T1) 2.AddnewcitiesnotflowntobySouthwestsuchasAtlanta,Charlotte,Chicago,andNewYork.(W2, T4)
12 THANK YOU