Southwest Airline Company Strategy and Policy Analysis

571 Words3 Pages
Section 1: Identify the Firm’s Core Strategy The Southwest Airline Company is famous for its low pricing, short- distance airlines. And also this strategy helps them to be the most profitable airline company in United States. Different than other airlines, Southwest Airline put the effort on how to lower the cost, and be more efficient, instead of providing luxury airline, and compliment. Thus, Southwest Airline use the low price as a competitive advantage to gain a huge percentage of domestic short- distance flight. However, Southwest Airline also expand their business to long- distance domestic airline and international fight in recent years, and they successfully enter the new area with the low- price advantage. Section 2: External Analysis Southwest Airline is the 4st large airline company in United States, but it is the most profitable company. Even though after 9.11 terrorists attacked happened, Southwest still kept their airline business in a good position. And in 2011, when the U.S stock market decreased, Southwest Airline decided to buyback the stock , which shows the confident they had. However, Southwest Airline are affected by business related issues. The company is keeping improve the way they do the business. To make their customers feel comfortable during the flight, Southwest installed Wi-Fi in most of the airplanes, and by the end of 2013, Wi-Fi was available on every domestic Southwest Airline. As an airline company with low- price advantage, rivalry among competing firms, and potential entry of new competitors are essential to Southwest. As the low- price is the most important reason people choose Southwest Airline, the company needs to keep price low to attract people. The most airline company are trying to excellent service and comfortable seat with expensive ticket, and if there is another airline is trying to provide the cheap ticket
Open Document