Southwest Airlines case study.pptVIP

Southwest Airlines 2002 Discussion Question 1 Use the model of the general environment (Chapter 2, Table 2.1) to evaluate the opportunities and threats facing the U.S. airline industry and Southwest Airlines in particular. Discussion Question 1 What are the key opportunities and threats? Opportunities: Not being influenced by the international airline market. Southwest airlines keep developing. Threats: Due to the high aircraft utilization, several slight problems will cause serious influence. Also, they will have some problems because of weather or airport congestion. Discussion Question 2 Do you anticipate any new opportunities and threats? Opportunities: Still low fare tickets, but have more added-value services Threats: New entrants (Because Deregulation) Value-added service – successful? Failure? Discussion Question 3 Use Porter’s Five Forces Model to determine the attractiveness of the U.S. airlines industry. Discussion Question 4 What are Southwest’s tangible and intangible resources? Discussion Question 4 Which are more important as a source of competitive advantage? Cost control Spirit of the employees Discussion Question 5 Does Southwest have a sustainable competitive advantage? YES Regular fare – well cost control Offsetting future transaction – Well control in fuel cost Discussion Question 6 Discuss Southwest’s business-level strategy Discussion Question 6 Is this strategy appropriate to offset the forces in the industry? YES Because “Customers are the foundation of successful business-level strategy”. Discussion Question 6 Do you recommend any changes? Strike the balance between high aircraft utilization and air safety Discussion Question 7 Should Southwest expand internationally? NO The reasons are… Discussion Question 7 Let’s look several business routes of Southwest Airlines company… Discussion Question 7 Discussion Question 7 Discussion Question 7 Discussion Question 7 Market share in northeast was still small… Than