Complete a case study of Southwest Airlines.You will find the case in the case section of the text.
A formal, in-depth case study analysis requires you to utilize the entire strategic management process. Assume you are a consultant asked by Southwest Airlines to analyze its external/internal environment and make strategic recommendations. You must include exhibits to support your analysis and recommendations.
Your paper must include:
1. Existing mission, objectives, and strategies.
2. A new mission statement (include the number of the component in parenthesis before addressing that component).
Great mission statements address these 9 components:
Customers: Who are the firm’s customers?
Products or services: What are the firm’s major products or services?
Markets: Geographically, where does the firm compete?
Technology: Is the firm technologically current?
Concern for survival, growth, and profitability: Is the firm committed to growth and financial soundness?
Philosophy: What are the basic beliefs, values, aspirations, and ethical priorities of the firm?
Self-concept: What is the firm’s distinctive competence or major competitive advantage?
Concern for public image: Is the firm responsive to social, community, and environmental concerns?
Concern for employees: Are employees a valuable asset of the firm?
3. Analysis of the firm’s existing business model.
Case Study: Southwest Airlines
Introduction
Southwest Airlines is a major American low-cost carrier that was founded in 1967. The company is headquartered in Dallas, Texas, and operates a fleet of over 700 Boeing 737 aircraft. Southwest Airlines is known for its low fares, friendly customer service, and unique culture.
Existing Mission, Objectives, and Strategies
Southwest Airlines’ mission statement is: “To connect people to what’s important in their lives through friendly, reliable, and low-cost air travel.”
The company’s objectives are to:
Southwest Airlines’ strategies to achieve its objectives include:
Analysis of the Firm’s Existing Business Model
Southwest Airlines’ business model is based on providing low-cost air travel to its customers. The company is able to offer low fares by keeping its costs low. This is achieved through a number of factors, including:
Southwest Airlines also focuses on providing reliable and on-time service. This is important to customers who are using Southwest Airlines for business or personal travel.
New Mission Statement
I recommend that Southwest Airlines revise its mission statement to:
To connect people to what’s important in their lives through the world’s most reliable, low-cost, and customer-focused air travel.
This new mission statement is more specific and aspirational than the current mission statement. It also emphasizes Southwest Airlines’ commitment to customer focus, which is one of the company’s core values.
Strategic Recommendations
I recommend the following strategic recommendations for Southwest Airlines:
Exhibits
Exhibit 1: Southwest Airlines’ SWOT Analysis
Strengths:
Weaknesses:
Opportunities:
Threats:
Exhibit 2: Southwest Airlines’ Competitive Landscape
Southwest Airlines’ main competitors are other low-cost carriers, such as Spirit Airlines and Allegiant Air. Southwest Airlines also competes with traditional airlines, such as Delta Air Lines and United Airlines.
Southwest Airlines has a number of competitive advantages over its competitors. These advantages include:
Conclusion
Southwest Airlines is a well-managed company with a strong business model. The company is well-positioned for continued growth and success. I recommend that Southwest Airlines expand into new markets, develop new products and services, invest in new technology, and continue to focus on customer service.