Southwest Airlines and American Airlines SWOT Analysis

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SWOT analysis – internal analysis and environmental analysis.

*****Analyzing both airlines with a focus on domestic flights. *****

Southwest Airlines is the largest low-cost carrier in the world and is one of the major airlines in the United States. Its strategy is to capture market share by offering affordable tickets for direct routes between popular destination cities (for example, Albuquerque to Denver, Denver to Phoenix, Phoenix to Las Vegas, and so on).

American Airlines is the world's largest airline across several metrics, including fleet size, revenue, number of passengers, passenger mileage, and number of destinations served.

Product: Domestic flights (passengers)

Research plan: For this project, we will be collecting secondary data (as primary data would be incredibly difficult to collect) and focus heavily on quantitative research as we will be identifying the relations between many variables. We will use formal literature evaluation focusing on previously conducted market research and peer-reviewed literature and studies published in academic journals.

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Southwest Airlines and American Airlines SWOT Analysis
Introduction: The paper will be analyses the operational internal and external factors that affect
Southwest Airlines and American Airlines’ operations using the SWOT (Strengths, Weaknesses,
Opportunities, and Threats) analysis model.
I.

II.

SWOT Analysis for Southwest Airlines
a. Strengths
i.
Point-to-Point Service
ii.
Strong fleet base
iii.
Low turnaround time
iv.
Price leadership
b. Weaknesses
i.
Over-dependence passenger revenues
ii.
Over-dependence on Boeing
iii.
Technological problems
c. Opportunities
i.
Local and global expansion
ii.
Growing global tourism
iii.
Increase freight business
d. Threats
i.
Intense competition
ii.
Operational costs are likely to rise
iii.
Lawsuits and litigation
SWOT Analysis for American Airlines
a. Strengths
i.
Loyalty Flyer Program
ii.
Strong Alliances and Tie-ups
iii.
Operation network
iv.
Reputation for onboard entertainment
b. Weaknesses
i.
Tainted reputation
ii.
A limited number of suppliers
c. Opportunities
i.
Local and international expansions
ii.
Growth in Air Freight
iii.
Growth in global tourism
d. Threats
i.
Intense competition
ii.
Growing security concerns
iii.
Operational costs are likely to rise


Running head: SOUTHWEST AIRLINES AND AMERICAN AIRLINES SWOT ANALYSIS 1

Southwest Airlines and American Airlines SWOT Analysis

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SOUTHWEST AIRLINES AND AMERICAN AIRLINES SWOT ANALYSIS

2

Southwest Airlines and American Airlines SWOT Analysis
The United States aviation industry has for many years seen several changes from its
period of inception. It gets better and better as the years pass with technological and scientific
innovations. At the moment, air transport has emerged as the most preferred means of
transportation for long distant travels linking the major cities in the United States and to other
countries. Several commercial passenger airlines are operating within and outside the United
States. Southwest Airlines and American Airlines are among the major airlines operating in the
United States. Southwest Airlines is one of the largest domestic passenger company in the united
states. With over 50 years of operations in the United States aviation industry, Southern Airlines
now connects almost all the cities domestically, and it is low priced with a little turnaround and
one of the biggest revenue earning aviation company. American Airlines, on the other hand, is
one of the world's largest airline company operating in several regions around the globe and
domestically through its subsidiaries.
Southern Airlines and American Airlines are the dominant companies in the domestic and
international aviation, and they have several strengths that enable them to remain competitive
and grow in the aviation industry. Each company also has its share...


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