Southwest Airlines SWOT Analysis: SWOT Analysis Example

Check out a Sample SWOT Analysis

It is worth doing a SWOT analysis on Southwest Airlines - but first, you should understand what SWOT stands for. 

SWOT is an acronym for Strengths, Weaknesses, Opportunities and Threats.  These four are categorized according to how attributes of the organization and the environment influence the achievement of objectives.  Strengths are organizational qualities while Opportunities are environmental factors, and both of these contribute to goal achievement.   Weaknesses are organizational qualities while Threats are environmental factors, and both of these are hindrances to goal achievement.  SWOT is used to analyze organizations for strategic and marketing purposes. 

  1. Strengths are beneficial factors of the organization, which allow it to have an advantage over competitors.  For example, Southwest Airline's strengths are attributes such as the billions it had made during increases in revenue and income, the power it exerts over the airline industry, the reputation it has for being the best in low cost airlines along with its remarkable capacity usage and size of operations.
  2. Weaknesses are a lack of beneficial factors or impediments to achieving successful outcomes.  Southwest Airline's weaknesses are factors such as the lack of morning and international flight offers, dependency upon a single producer, not making use of online booking agencies and online communication, not providing segmented seating, and limited allowances for cargo and freight.
  3. Opportunities are factors in the surroundings that help an organization grow and be productive.  These include the developments of new technology, growth of travel for business and leisure, increase in advertising through the internet, longer duration of flights, as well as the increase in the number of clients belonging to the older generation and the Hispanic population, which make use of the airlines frequently.
  4. Threats are harmful situations, events or conditions present in the environment of the organization.  These involve the decrease of traveling by tourists due to economic downturns and cases of terrorism; attacks carried by terrorists to airlines, competition coming from online reservations, fluctuations in gas prices, and also increased restrictions and costs coming from the government.
  5. The SWOT analysis includes studying the interaction of these four factors.  Making use of strengths during opportunities result to bringing out the best within the organization.  Strengths used during threats allow for brainstorming for possible solutions.  Strengths used along with weaknesses compensates for lack and deficiencies.  Opportunities allow weaknesses to be corrected and eradicated.   Weaknesses during threats show the weakest point of the organization and measures can be done in order to avoid instances of this happening.
  6. There are a lot of additional factors concerning Southwest Airlines, which can be analyzed using the SWOT method.  To do thorough analysis, you can find sources of information in the internet, in books and magazines or by interviewing Southwest Airlines personnel.

 Make use of credible sources and do your best to conduct a thorough analysis to get the most accurate picture possible.


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