Southwest Airlines Case Study Example | Topics and Well Written Essays - 750 words

Southwest Airlines - Case demand ExampleThe challenges be recession, intense competition, intensified airline regulations, uncertain prevail conditions in new markets, and bear on demands. The recommendations are determine a succession plan, expand obtusely to underserved markets, and strengthen the culture committee.Southwest Airlines is an example of a low-fare/no-frills airline with a point-to-point service strategy. It focuses on the southwest region of the U.S., where weather is more stable and delays are less frequent. The Airline Deregulation Act of 1978 intensified competition because of the absence of government regulation in setting fares, allocating routes, and controlling entry and exit points. Instead of encouraging truly indigent competition, the Act benefitted large carriers who cherry-picked lucrative routes (Ginsberg & Freedman, p.260). A Porters 5-forces analysis reveals that the airline industry has intensifier rivalry, high supplier power, low substitute , high buyer power, and high threat of new entrants. The strengths of Southwest are its good safety reputation, efficient services, low costs, strong corporate culture, strong customer and employee focus, and strong leadership. The weaknesses of the confederacy are lower load factor, relatively low employee productivity, slow expansion rate, dependence on the attractive leadership of Kelleher, and reliance on passenger revenues. The opportunities are booming U.S. airlines industry, positive expansion in the US airfreight industry, underserved markets, increasing technology efficiency, and sympathetic business passengers. The challenges are recession, intense competition, intensified airline regulations, consolidation, uncertain weather conditions in new markets, and labor demands.The main problems of Southwest are 1) it lacks succession planning 2) it has a slow market expansion rate, because of its limited point-to-point service strategy and 3) if Southwest changes its service