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Answered Same Day Aug 07, 2021 MGT302

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Sanjukta answered on Aug 10 2021
136 Votes
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Case Study Analysis
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Executive summary
Southwest Airlines is one of the best airlines company among their potential competitors. It has been seen that the minimal effort system as to these specific aircrafts has helped the market to develop at a distu
ing rate. Moreover, the admissions roughly dropped by half from their previous midpoints, the quantity of new purchasers in the commercial center become fourfold. The danger from the substitutes is very low. The corporate procedure of this firm right from the earliest starting point was to be unique in relation to others with its fun, straightforward just as gainful way of thinking. It very well may be said that the business level system of the Southwest Airlines is cost authority business procedure. At present these specific ca
iers is concentrating on the four fundamental systems just as far as a
iving at its serious position and four methodologies.
Table of Contents
Executive summary    2
1.0    Introduction    4
2.0 Background of the firm (Southwest Airlines)    4
3.0 Industry Analysis    4
4.0 Macroenvironmental analysis (PESTEL)    5
5.0 Internal analysis (SWOT)    6
6.0 Competitor analysis (Applying five forces model)    8
7.0 Strategic analysis    9
8.0 Recommendation    9
9.0 Conclusion    10
10.0 References    11
1.0 Introduction
The main strategy of the Southwest Airlines revolves around offering extremely low prices when contrasted to the other large airlines such as American and Delta Airlines. They are built on the business model with regard to low operating costs so that they will be able to offer low prices.
The main aim of the report is conducting industry airlines, Macroenvironmental analysis, competitor analysis, strategic analysis and then providing recommendations accordingly.
2.0 Background of the firm (Southwest Airlines)
It can be said that Southwest Airlines is one of the best American airlines and it is headquartered in Texas. This particular airline came into existence in the year 1967, 15th of March by He
Kelleher. One of the main goals of this particular airline revolves around delivering the primary quite efficiently. The mission of these airlines is dedicating highest quality of the consumer service with friendliness, warmth, company spirit as well as the individual pride. They have remained successful for last 30 years and it serves 50 cities in the 27 countries and also has 2500 flights on a daily basis (Callison and Seltzer, 2010).
3.0 Industry Analysis
3.1 Porter’s fiver forces
Threat of new entrants- It has been observed that this airline is growing continuously and over the years it has achieved reasonable economies of scale but it has also resulted in huge investments and growth over the years. On the other hand, it has been observed that other airlines such as Ryanair and Easyjet can dramatically change the industry threatening the position of Southwest Airlines. Due to these factors the Southwest Airlines is facing medium threat with regard to the new entrants
Present rivalry- it is needless to say that when it comes to transportation individuals have lot to choose from. There are a lot of firms who offer the similar services to those with regard to Southwest Airlines as well as their competition can be regarded as quite strong. Furthermore, rivalry among the existing companies enhances the profitability of the entire industry. For instance, Continental Airlines, American Airlines, Ryanair etc.
Threat from substitutes- It has been observed that the low cost strategy with regard to these particular airlines has helped the market to grow at an alarming rate. Furthermore, the fares approximately dropped by 50% from their earlier averages, the number of new consumers in the marketplace become quadruple. The threat from the substitutes is quite low (Heskett and Sasser, 2010).
Power of the buyers- The bargaining power of the buyers in this industry is enhancing because of some of the factors. Apart from enhanced competition the rise of low-cost ca
iers is also a vital factor that has increased the power of the consumers.
Power of the suppliers- It has been observed that Boeing enjoys huge amount of power as one of the best supplier for Southwest Airlines. Bargaining power is quite low as most of the suppliers can be replaced and this airline does not depend on a single source.
4.0 Macroenvironmental analysis (PESTEL)
4.1 Life cycle stage of Southwest Airlines
This particular airlines company is in the maturity stage with regard to the industry life cycle. In this particular stage type of growth is mainly the outcome of the growth in the economy (Lauer, 2010).
Political factors- This factor plays one of the most important role in terms of determining the role of the factors in Southwest Airlines long-term profitability in some of the market or country. This particular airlines is operating in a lot of countries (50 cities in 25 states) so they are exposing themselves in various political...
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