Southwest has product positioning it means that positions itself in all its marketing communications as the only low-fare, short-haul, high-frequency, point-to-point carrier in America that is fun to fly. Its low-priced fares are a brand equity which it "owns" in the mathematical sense of being the only major airline with a strong score on this attribute based on consumer research. In addition, Southwest has marketing positioning which is well defined business model that uses single aircraft type, short-hauls, secondary airports, point-to-point versus hub-and-spoke to keep its costs down. Southwest tries hard to differentiate itself by doing seemingly weird things. On the other hand, the only identifiable weakness of Southwest Airlines is its inability to introduce other brands of aircraft to its fleet. The organization mainly utilizes Boeing aircraft brands.
https://www.scribd.com/doc/136562587/Strategic-Audit-Southwest-Airlines
Thursday, October 20, 2016
Blog 10/21 Strong and weak aspects of firm
Southwest has a constant profit since 2014 and been able to achieve investment grade status along with Alaska air group. Southwest has been ranked the top travel brand and is one of the most recognized brands in the US. The airline has gained recognition by not following in other airlines footsteps by putting major funds into advertising at sporting events which other airlines like United have now taken advantage of. "Southwest is benefitting from strong demand within the US market place, reflected in its 8% passenger unit revenue growth in 2Q2014, the largest gain of any US airline."
Our airlines weaknesses lie in the international flight segment. Major airlines like United and Delta gain exponential profit off of international flights. Along with adding international flights, I believe it would be beneficial for our airline to upgrade amenities on the flight. The Southwest fleet are the newest airplanes in traveling but still sometimes come without Wifi or extra leg room(Business class customers).
http://centreforaviation.com/analysis/southwest-airlines-swot-financial-strength-is-mainstay-but-cost-and-culture-challenges-loom-large-187714
Our airlines weaknesses lie in the international flight segment. Major airlines like United and Delta gain exponential profit off of international flights. Along with adding international flights, I believe it would be beneficial for our airline to upgrade amenities on the flight. The Southwest fleet are the newest airplanes in traveling but still sometimes come without Wifi or extra leg room(Business class customers).
http://centreforaviation.com/analysis/southwest-airlines-swot-financial-strength-is-mainstay-but-cost-and-culture-challenges-loom-large-187714
Saturday, October 1, 2016
Differential Advantage ( International Operation)
Company
International Markets To Take Center Stage In 2016
Until 2014, Southwest was known to be a domestic carrier with negligible international exposure. However, with the completion of its merger with AirTran in 2014, initiated international flights to Aruba, Bahamas, and Jamaica. Following the success of these flights, the airline decided to further expand its presence internationally by building an international hub at Houston Hobby Airport, where the airline has a significant domestic presence. In this effort, the airline invested heavily on the first international terminal at the Hobby Airport consisting of five gates, of which four will be operated by Southwest. The new terminal will allow the airline to offer flights to new international destinations, particularly in Central America, Mexico, and the Caribbean.
According to the update provided by the CFO, the new terminal, which drew an estimated investment of $156 million (southwest.com) is on track for its launch next month. She also highlighted that the airline will be dedicated towards establishing its footing in the international markets in the next year, while enjoying the benefits of the robust capacity in Dallas. The airline has announced its plans to add flights from Hobby to Cancun, Mexico City, Puerto Vallarta, Los Cabos in Mexico, and Belize City, Belize by the end of this year. Apart from these six new flights, Southwest also aims to expand its services in 50 new international markets through the Baltimore Airport, the carrier’s second-busiest hub, and the Fort Lauderdale Airport. Over the next few years, we can anticipate Southwest’s international operations to contribute a larger and more significant portion of its revenue growth.
Source(http://www.forbes.com/sites/greatspeculations/2015/09/25/southwest-airlines-will-focus-on-expanding-its-international-operations-in-2016/#67ec5d25581f)
International Markets To Take Center Stage In 2016
Until 2014, Southwest was known to be a domestic carrier with negligible international exposure. However, with the completion of its merger with AirTran in 2014, initiated international flights to Aruba, Bahamas, and Jamaica. Following the success of these flights, the airline decided to further expand its presence internationally by building an international hub at Houston Hobby Airport, where the airline has a significant domestic presence. In this effort, the airline invested heavily on the first international terminal at the Hobby Airport consisting of five gates, of which four will be operated by Southwest. The new terminal will allow the airline to offer flights to new international destinations, particularly in Central America, Mexico, and the Caribbean.
According to the update provided by the CFO, the new terminal, which drew an estimated investment of $156 million (southwest.com) is on track for its launch next month. She also highlighted that the airline will be dedicated towards establishing its footing in the international markets in the next year, while enjoying the benefits of the robust capacity in Dallas. The airline has announced its plans to add flights from Hobby to Cancun, Mexico City, Puerto Vallarta, Los Cabos in Mexico, and Belize City, Belize by the end of this year. Apart from these six new flights, Southwest also aims to expand its services in 50 new international markets through the Baltimore Airport, the carrier’s second-busiest hub, and the Fort Lauderdale Airport. Over the next few years, we can anticipate Southwest’s international operations to contribute a larger and more significant portion of its revenue growth.
Source(http://www.forbes.com/sites/greatspeculations/2015/09/25/southwest-airlines-will-focus-on-expanding-its-international-operations-in-2016/#67ec5d25581f)
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