Making LUV Grow: Southwest Airlines

Paper Summary:

This paper presents a case analysis of American air company, Southwest Airlines. It includes a problem statement, an industry analysis, a situational or SWOT analysis, alternatives and recommendations.

Table of Contents:

I. Brief History
II. Problem Statement
III. Analysis
A. Industry Analysis
B. Current Position
C. Situational Analysis
IV. Alternatives
A. Possible Solutions
B. Recommendations
V. Implementation
VI. Works Cited
VII. Contact Sheet

From the Paper:

"Southwest is faced with many alternatives for expansion. However, the first alternative is to leave the business as it is. Southwest consistently posts profits despite hard times in the industry. The theme of this strategy is to remain committed to what Southwest does best by continually being the industry's low cost provider. While this might not seem like a viable course of action, consider that the top competitors have all posted losses in the past three years (Graph 1). It is sometimes a good strategy to wait until strong opponents are weak to take advantage of them. Case in point, Southwest has overtaken U.S. Airways in terms of sales as of 2003 without changing its strategy. However, it is unlikely at best that the remaining five top competitors will all file for bankruptcy twice in as many years as U.S. Airways did."

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