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External and Internal Analysis of Southwest Airlines - Case Study Example

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 This study " External and Internal Analysis of Southwest Airlines " discusses that the acquisition of other low-cost carriers of areas of high consumer demand will provide a great sustainability factor of the Southwest airlines, as it greatly mitigates the risk associated with the implications of the Wright Amendment Act…
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External and Internal Analysis of Southwest Airlines
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Download file to see previous pages The mission of the company is to provide airline services to the customers while generating a high amount of customer satisfaction through the intangible factors of warmth, friendliness as well as high-quality customer service (Southwest Airlines, 2013.).
It has to be said that the external analysis needs to take into account the various factors of the outside world that can seriously impact the business prospects of low-cost airlines. The external analysis can be best judged by evaluating the competitive business environment of the airline sector.
The global aviation sector is highly integrated with a lot of macro-level factors, which has to be taken into consideration while judging the business prospects associated with this sector. The high and tremendously complex level of integration of the multiple numbers of macro factors of various regions and countries has significantly pushed up the risk quotient that is associated with doing business in this particular sector.
While studying the trends that have existed in the aviation sector all around the world, it has been found that the competitive scenario in the last decade shared an inverse relationship for the growth of the airline business all over the world. The analysis of the performance of the airline sector in the period of 2000 and 2009 revealed that the sector of global aviation was subjected to a net loss of more than 52 billion USD. The expert analysts of the aviation sector cited that the issues related to fragmented nature of the airlines' sector all over the globe as well as a mismatch in terms of demand and capacity are the main reasons for the loss based upshots. The experts have predicted that with the continued existence of these factors, there will be a significant impact in the global airline sector. It has to be said that these factors will trigger a loss of more than 52 billion USD in the next couple of years (Brueckner and Lee, 2010).
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