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Southwest Airlines Case Study Solution

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Case Description

Southwest Airlines is known for its unique strategy, fun-loving corporate culture and its 32 years of consistent profitability. Appropriate recruiting, hiring,selecting, promoting, and training of employees are done so that a good fit with the strategy and organizational culture can be maintained. It is a Low Cost Carrier (LCC), is famous for its differentiated and competitive pricing strategies like low fares, which are often some 30% lower than most of its major competitors.
Problem Statement
How can Southwest airlines expand their business while maintaining their status as America’s most prosperous airline providing the same level of customer service and performance?
SWOT Analysis
Strengths:
1. It is a great climate and …show more content…

Such culture and environment helped southwest to sustained growth even in economic downturns,etc.
Technological:: Advance IT technology is used and Online booking operations, ticketless travelling,etc.
Legal: Competitors may intervene in between and create problems in operation.
For Example:It is mentioned in the case that Texas based airline imposed 2 cases against Southwest airlines to stop to from flying.
Ecological: Terrorist attacks and natural disasters as floods and earthquakes can also have a global impact on consumer’s demand for air travel and put struggling airlines further into the red.Fuel price surge and other economic downturn factor affected the company to some extent.
Criteria and Alternatives:
Option 1:Should Southwest go for internalisation?
Option 2:Should it continue to operate as it is making no changes in the current plans ?
Option 3:Should it go ahead and expand in the domestic market?
Option 4:Should it maintain its current strategy or adopt a new strategy?

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Option 3
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