Business Case

Southwest Airlines is one of the largest air lines in America. Southwest Airlines was established forty years ago and has no signs of stopping anytime soon. Southwest Airlines makes sure that the customer is happy and that they'll enjoy their flight and return in the future. Since the corporation is so big the corporation has numerous strengths, weaknesses, opportunities, and threats.

Some of Southwest's strengths are the strong policy that they have that a customer have and has made them the low cost carrier for consecutive years. Since Southwest Airlines have over 31,000 flights per day is a major strength because that's means revenue is increasing on a daily basis. Another strength that they have is that they were the first airlines to establish discounts for senior citizens, they also do Marketing on the web, and 50% of their revenue comes from online booking.

Even though Southwest Airlines has so many strengths they come with weaknesses. They're working on decreasing as many of them as possible so the company can be better in the future. Some of Southwest Airline's weaknesses are they try to cut cost in the customer service areas. This is a major issue because Southwest is known for their customer service and if they do not provide the service that the customers are used to, they will slowly stop doing business with them. One of the weaknesses that they are trying to change the fastest is that they only provide service for only 58 cities. As the company grows Southwest Airlines are really conservative about their strategies to adapt to the company's growth.

Southwest has the chance to become a better company but there are risks that they haven't took. Since they only provide service for only 58 cities so if they expand to more cities the customers will be appreciative and it will gain more revenue for the company. Another opportunity that Southwest Airlines have is get more promotion from their website.

Southwest's current strategy is to position itself as a cost leader with a focus strategy. Thecompany's management and employees aim to cost-effectively and reliably fly large number of customers on short, non-stop flights, and to have fun doing it. They are devoted to making flyingavailable to everyone. The company has been successful in implementing this strategy, havingexperienced strong growth and profitability. Southwest is now the largest carrier in the U.S. intotal customers. It has operated profitably for 32 consecutive years in an industry with a volatileearnings history. The main strategic issue facing Southwest at this time is to evaluate this strategyand determine its future course of action.

CHUOP Theot Therith: Southwest Airlines (2009)

1 Strategic Management

2. PROPOSE A VISION STATEMENT FOR SOUTHWEST AIRLINES

Southwest Airlines' Vision (proposed) is to be the famous mature and new generationAirlines Company that provides the most affordable, reliable and comfortable flighttransportation in both domestic and oversees.

3. THE COMPANY'S MISSION STATEMENT. The currently mission statement

The mission (existing) of Southwest Airlines is dedication to the highest quality of CustomerService delivered with a sense of warmth, friendliness, individual pride, and Company Spirit.

. The mission statement proposed

A better Mission Statement proposed is "to provide quality service for the everyday person.Southwest services air travel to cities all around the U.S with the latest technology and the mostluxurious planes. Through the search for the greatest advantage in today's busy world, wecompetitively provide the lowest air-fare price with ensuring high company sprit and long termfinancial prosperity. Southwest is committed to offers the highest standards of safety/integrity forall our customers at an affordable/reasonable price. We ensure all processing is respect to thegovernmental regulations and we also have the policy for annual donation regularly to variouscharities throughout the United States. Since the first flight of Southwest in 1971, our employeeshave been the vital asset in making Southwest the most recognized airline today

Opportunities

There are opportunities for growth markets share, and expansion to new markets

1. More than 100 new cities have encouraged Southwest to offer flight service (2003)

2. There is an increased demand for international travel

3. Increased demand for cities that are currently (by 2009) without Southwest airlineflights such as New York, Atlanta

4. With an increase of nearly 3 million people in the US there is an expansion of developing cities across the United States

5. Increased amount of upper level business travelers has led to greater demand forbetter seats.

*Technological competency and its popularity of Southwest

6. First airline on the web

7. Booked online 13.6% more than American Airlines (in 2004)

8. Top-ranked web site in customer satisfaction