Southwest Airlines and Strategic Alliances

Paper Summary:

This paper examines Southwest Airlines' many identified weaknesses, such as poor short-term liquidity, lack of strategic alliances, and declining revenue yields. The paper asserts that it is imperative that the firm forms more strategic alliances, especially in the airline industries. The paper contends that the advantage of this is that the Southwest Airlines will then have a larger market share and, when collusion takes place, it is tantamount to acting like a monopoly, resulting in more profits in both the long and short run for the airline. The paper also suggests that the firm incorporate technology in its operations. To summarize, the paper suggests that both strategic alliances and the implementation of recommended technology will improve the business.

Outline:
Introduction
Incorporating Technology in its Operations: Increasing Strategic Alliances for Southwest
Benefits from Technology for Southwest Airlines
Conclusion

From the Paper:

"Southwest Airlines can incorporate this aspect of operations by using its exceptional profit margin to gain acquire more cost efficient and technologically advanced assets. The Airbus 380 landed in Los Angeles International Airport which is one of the biggest and cost efficient jets, Southwest Airlines should be at the forefront in debuting improvements in technology like this one to leverage alliances and increase the choices for consumers. Southwest currently uses Boeing 737s because it does smaller frequent flights from city to city. However increased technology can be achieved with upgrades to the current fleet or an introduction of fixed assets."

Sample of Sources Used:

• Leonhardt, D. Airlines Using Technology In a Push for Shorter Lines. Regisoft, 2003. Retrieved on April 1, 2007 from http://www.regisoft.com
• Oldham, J. "Landing of Airbus 380 Jet at LAX Should be Huge". L.A. Times, March 18, 2007. Retrieved on April 1, 2007 from http://travel.latimes.com/articles/la-trw-airbus18mar18
• Reed, Dan. "Airline Industry Poised for Shake-up"? USA Today, 2006. www.usatoday.com/money/biztravel/2006-12-13-airline-mergers_x.htm
• Turban, E., Rainer, R., Potter, R. Introduction to Information Technology. New York: John Wiley and Sons, Incorporated, 2003.

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