Monday, May 6, 2019
Business Case Study Essay Example | Topics and Well Written Essays - 2000 words
Business Case Study - Essay instanceThe paper discusses the history of the Airline, strengths, weaknesses, opportunities and threats ( devise), discusses an appropriate strategy that can be adopted by the air hose to acquire evolution. Southwest (2009)Southwest airline was formed in 1971 by Herb Kelleher and Rollin King, their main aim was to gallop freights to customers at the lowest price possible and also make sure consumers arrived at their destinations on time. The phoner has expanded over the eld and today the airline offers services to over seventy million consumers in a year. (Southwest (2009))In 1979 the troupe introduced a self service ticket booking machine, this change magnitude public toilet to consumers. However in this year the airline could only offer services to 3 states, in 1983 the airline expanded and change magnitude its destinations to over 34 cities. After the September 11 attack the airline settle down recorded a profit but its revenue declined by60 %, in the following year the offspring of destinations plusd to 58 cities. In 2004 the lodge was ranked as the fourth tumidst carrier given that the number of consumers per years had increased and the political party had made profits for over 30 year in a row. (Southwest (2009)) directly the airline is still one of the best performing countries and its strategy has helped the company to achieve high growth and make profits over the years, the number of destinations have increased and due ... However a major(ip) problem is that other airlines have adopted the companys strategies and this has reduced its competitive position in the airline industry. (Southwest (2009))B. SWOT analysisThis section discusses the strengths, weaknesses, opportunities and threats of Southwest airlinesStrengthsThere are a number of internal strengths of the company, these strengths include1. upset fare pricesThe company offers low fare prices, the low fare prices results into increased ticket demand in creased usage helps the company to realize economies of scale and therefore achieves high profits.2. Online bookingThe company has an advantage in that over 50% of booking are made online, it online booking services helps promote convenience to the customers.3. unionise workers and flexible working hoursOne in four employees of the company is a union member. However the company is still able to negotiate flexible working hours despite many employees being members of a union. (Robinson (2002))WeaknessesThe company has a number of weaknesses and they include1. International freightsThe company only offers services to a limited number of destinations, the company offers services to58 destinations only, it offers short distance freights and does not offer international freights that would help the company increase number of freights and revenue. (Robinson (2002))2. Boeing 737The company only uses one product which is Boeing 7373 and this may be considered a major drawback to the compan y given that its reputation could be highly affected if the safety of such aircrafts is compromised.3. Unionized workersA large number of the companys employees are unionized, this affects the company given that negotiation regarding wages and working hours are done by a
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