Southwest Airlines Strengths And Weaknesses

SWOT Analysis One strength of Southwest Airlines is the strong fleet base, which enhances the company ability to deliver services effectively. The airline has one of the biggest fleets of Boeing aircraft globally, with multiple models of the aircraft, which helps with the effectiveness of their services. Other strengths are the revenue-increase using point-to-point service strategy, and the low-price strategy, which helps to maintain the volume of the passengers. The point-to-point services save time in the form of direct flights and provides better asset utilization for the company. Southwest Airlines’ business model allows the lower priced flights by saving money on fuel at large hubs, and in short turnaround time. The company is one of the only airlines in the world that are consistently profitable (Bhasin, H., 2018). A weakness of the airline is its dependency on a single aircraft

Their key-idea is diversification, which Southwest Airlines is achieving by offering more products to more customers in the industry in the efforts of attempting to dominate the overall market share (Bradley, J., 2017). Functional strategy: Southwest Airlines is a passenger airline providing scheduled air transportation in United States and internationally. In Southwest Airlines functional structure with three layers of management, where the upper-management makes all the decisions, which gives them complete power over the company, as well as a clear career trajectory for the Southwest employees. The functional structure is providing stability and efficiency but, on the other hand, could also have a disadvantage if the communications between the departments and the upper management are not functioning (Southwest,2018).