It is the major domestic airline, and ranked number 1 in by the Bureau of Transportation Statistics Rita. Back in the airline began its services in Texas in the cities of Houston, San Antonio, and Dallas.
This firm has been experiencing challenges in maintaining competitiveness with the market. External environment has a great impact on the competitiveness of the firm and this is why a clear understanding of this environment isessential for a firm. This analysis has divided Southwest Airlines external environment into the macro and micro environment.
Macro environment are general environment factors that affect all business within the market. This analysis has focused on the impact of the political, economic, sociocultural and technological environment on Southwest airlines.
The microenvironment refers to factors that affect firms within a specific industry. These factors include; rivalry; threat of substitute; threat of new entrants; consumer power and buyer power. An analysis of these environment factors has illuminated various opportunities and threats to the organization.
Southwest Airlines can enhance competitiveness by making use of the opportunities and countering the threats. Introduction Southwest Airlines is a carrier that operates in the American domestic market.
It is the airline became the largest domestic carrier in the country, according to the number of domestic passengers. However, the company has been straggling to maintain competitiveness within the market. The external environment of a firm has a significant impact on the competitiveness of firms and, understanding this environment will enable the company to enhance its competitiveness.
This environment consist several factors, which cannot be controlled by business but which have significant effects on the business.
These factors are discussed below. One of this element concerns safety regulation. The country has experienced increased threats to national security. Consequently, the government has developed tough security policies which affect the airline industry Eldad, Airlines have been compelled to heavily in security thus increasing business cost.
Economic Environment Prevailing economic condition the market also has an impact on Southwest Airlines. One of the elements of the economic environment that has had an impact on Southwest is economic growth.
In the last fives years, the US has experienced slowed economic growth. Slowed economic growth is having a substantial impact on the employment situation and the purchasing power of the consumer Eldad, Due to slowed economic growth, employment opportunities have become limited.
This has impacted on the purchasing power of consumer. Consequently, the travel industry has been affected as people opt to travel only when it is necessary. Even when people have to travel, a good number of passengers are opting for cheaper alternatives.
Sociocultural Environment The sociocultural environment has also had it impact on Southwest Airlines.
One element of this environment that is having a substantial impact on the airline is social mobility. The UnitedState society has become highly cosmopolitan Eldad, People are moving way from their traditional area of living to work and living in other places.
Consequently, traveling has increased across the country as people move from area to visit relatives and friends who live in another area.
This has resulted in increased business for the airline industry. There is also high movement of labor across the different states of the country. This has also increased the volume of travelers thus having a positive impact on the company revenues.
Technological Environment The technological environment has also had both positive and negative impact on the airline industry.
Ticketing is one of the areas in which technology has resulted in a positive impact for the company Brueckener, Technology has enabled the airline to do away with the paper tickets and introduce electronic method of ticketing. This has enabled the company to reduce costs associated with printing tickets.
Electronic ticketing has also enabled the airlines to manage its visitors more efficiently. This is because passenger details can easily be conveyed to airline attendants as well as be easily conveyed from one terminal to another. Communication technology is also having a negative impact on the airlines.SOUTHWEST AIRLINES ANALYSIS Southwest Airlines Analysis Part 1: External Environment Analysis Key Economic and Industry variables.
From to , the airline industry has had mixed profit and loss results.5/5(1). “The paper focuses on the internal analysis and SWOT analysis of Southwest Airlines.” Introduction Southwest Airlines is the largest local Airlines of United States that mainly offers facility of point-to-point and inexpensive fare services.
Southwest Airlines SWOT: Financial strength is mainstay, but cost and culture challenges loom large At 43 years of age, Southwest Airlines is firmly entrenched in middle age within a mature US market place. Page 1 of 9 Five Forces, SWOT and Internal Analysis of Southwest Airlines and the Airline Industry Introduction Since itsinception,the commercialairline busine.
We have divided airlines into two broad groups – network carriers and value In last year’s Airline Economic Analysis, we wondered about clouds on the horizon, and the Southwest, Spirit, Virgin America) Total for network carriers (Alaska, American, Delta.
Southwest Airlines Co. began its operations in (Southwest, ) and has been serving the industry for the past 41 years now. It is the major domestic airline, and ranked number 1 in by the Bureau of Transportation Statistics (timberdesignmag.com, ).