We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Southwest Airlines - External Environment Analysis - Essay Example

Comments (0) Cite this document
Summary
The paper "Southwest Airlines - External Environment Analysis" discusses that social, technological and economic factors are the ones that are mainly affecting the airline industry (Business Balls website, 2012). Southwest is also dealing with the integration of Air Trans into its fleet, operations and culture…
Download full paperFile format: .doc, available for editing
Polish This Essay95% of users find it useful
Southwest Airlines - External Environment Analysis
Read TextPreview

Extract of sample
"Southwest Airlines - External Environment Analysis"

Download file to see previous pages This paper will look at the Five Force Model affecting the degree of competition as developed by Michael Porter and discuss the effect of each factor on the airline industry. We will also conduct a PEST analysis for Southwest Airlines as part of the airline industry. The Porter Five-Force Model Michael Porter put forth his Five Force Model in his groundbreaking work ‘Competitive Strategy: Techniques for Analyzing Industries and Competitors’ back in 1980. In the decades that followed, he has further explored the global business arena in terms of competition, the value chain, the competitive advantage of nations and even how to create and sustain superior performance in business. Porter maintains that the five forces that affect the level of competition among firms in an industry are (1) barriers to entry and exit; (2) threat of substitutes; (3) bargaining power of buyers; (4) power of suppliers and (5) existing rivalry between firms. In the same work, Porter has also analyzed industries as falling into one of the following five groups: (a) Fragmented; (b) Emerging; (c) Mature; (d) Declining and (e) Global (Porter, 1980). In fact, Porter’s analysis serves as a good theoretical tool to supplement a firm’s PEST analysis, which we shall now conduct for the airline industry in general and Southwest Airlines in particular. Sources-barriers to entry and exit: The high cost of entry and exit in the airline industry globally include investment in equipment, infrastructure, buildings and facilities, an experienced workforce and aircraft maintenance and inspection, insurance, safety and security features. The high cost of aircraft and fuel is also affecting airline sustainability and the bottom line (Southwest website, 2012). Sources-threat of substitutes: Alternative choices for air passengers would include fast trains, buses, automobiles and even ferry services. However, nothing beats the convenience of an airplane. Terrorist threats, luggage restrictions and safety and security checks can also scare passenger away (Porter, 1980). Sources-bargaining power of buyers: With the Passenger Protection Act in place to safeguard customers against price hikes, and insurance, safety and security measures that must be maintained at all times, and discount prices that are eagerly picked up by bargaining customers, this puts the buyers in the driving seat on many counts (David, 2011). Club memberships and frequent flyer miles may be offered to regular passengers to help retain their loyalty, and there are often possibilities of an upgrade to a higher class if seating is available.  Sources-power of suppliers: McDonnell Douglas and Airbus Industries are two of the most well-recognized aircraft manufacturing firms having a global recognition and reputation. Both of these firms take most of the world’s orders but there are also a number of smaller firms that make smaller and lighter aircraft for other purposes. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Southwest Airlines - External Environment Analysis Essay - 1”, n.d.)
Retrieved from https://studentshare.org/management/1455808-mgt599-strategic-management-mod-2-slp
(Southwest Airlines - External Environment Analysis Essay - 1)
https://studentshare.org/management/1455808-mgt599-strategic-management-mod-2-slp.
“Southwest Airlines - External Environment Analysis Essay - 1”, n.d. https://studentshare.org/management/1455808-mgt599-strategic-management-mod-2-slp.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Southwest Airlines
The paper tries to identify the performance of the company before and after the deregulation. It has been noted that the performance of the airline industry has been quite unstable because of deregulation. However, Southwest Airlines has been able to maintain its position because of its innovative strategy of low cost airlines and also due to its commendable service towards the passengers.
7 Pages(1750 words)Essay
Business Analysis of Southwest Airlines Corporation
Term Paper Title Name Final Term Paper Section Number Date Table of Contents Assignment 3 1) Cost-benefit analysis refers to the evaluation of the advantage and the cost incurrence in undertaking a given project. It helps in decision making, since if the cost is found to be more than the benefits, then it is not worth investing in the project and vice versa.
9 Pages(2250 words)Essay
Strategic Management - Southwest Airlines
Possible strategies and their impacts for the organization (Grand Strategy Matrix) 5. Alternative Strategies (Corporate, Business, and Functional)-Bundles of Strategy Strategic Formulation: A Case Study of Southwest Airline 1. Introduction Few Airline industries have been as successfully strategic despite a number of organizational bottlenecks like Southwest Airline.
8 Pages(2000 words)Essay
Southwest Airlines: Analysis of Environment
Any firm within a given industry operates under ever changing circumstances. Factors internal to a company are called its strengths and weaknesses, while external factors providing opportunities and threats to all firms have to be considered as well while framing or changing strategy.
5 Pages(1250 words)Essay
Southwest Airlines Strategic Management
The discussion explains about the history of the company along with its organizational values in terms of its mission and vision. Moreover, a SWOT analysis of Southwest Airlines has been performed in the discussion to assess its competitive presence in the global market scenario.
5 Pages(1250 words)Essay
Southwest Airlines Marketing Plan Report
The company wants to provide every people of the world the opportunity to fly. The company has the intention of providing the employees with a work environment that would be a stable one and there would be equal opportunity for all the employees in the organisation irrespective of any cast, creed, religion, gender or sexual orientation to grow in their career and nurture their talents.
13 Pages(3250 words)Essay
Southwest Airlines Case Anaylsis
Southwest Airline Company was founded in 1971 by Rollin King and Herb Kelleher. These two individuals were driven by the notion that concerned getting passengers to their different destination when they wish, at the time they want, at the minimum charges and ensuring that they enjoy their journey.
40 Pages(10000 words)Essay
Southwest Airlines Essay
Its corporate culture, famously non-traditional, increased employee loyalty and productivity. The influence of that culture on its business model and strategic implementation resulted in a highly successful business. The combination of a low-cost strategy and distinctive culture has allowed Southwest Airlines to position itself as an industry leader while remaining a very popular place to work.
10 Pages(2500 words)Essay
Financial Analysis - Southwest Airlines case
The competitive and legal battles developed a fighting streak and the desire to survive and succeed despite all odds. The warrior attitude that the airlines developed over the initial years has shaped up its
7 Pages(1750 words)Essay
Southwest Airlines Study
Businesses, therefore, apply various strategies including buyouts, mergers, acquisitions, franchise, and many other strategies to ensure their growth. These strategies also are used strategically by the companies to
5 Pages(1250 words)Essay
Let us find you another Essay on topic Southwest Airlines - External Environment Analysis for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us