SWOT Analysis-Strengths

1. SW has a larger market capital compared to others with $11.3 billion. 2. SW has all flights going to cities within the United States. 3. Use point-to-point flight system with no hubs one way. 4. Ability to determine cost/prices within the organization. 5. Leader in market capitalization. 6. Largest in US by the number of passengers carried yearly and 3rd in the world. 7. One of the worlds most profitable and highest posted profits for 34 consecutive years. 8. In 2006 70 percent of flight bookings and 73 percent of revenue came from bookings on Southwests website. 9. Low prices and relaxed atmosphere made it an icon. 10. First airline to have a webpage in 1995. 11. SW has 481 Boeing 737s jets. 12. Financially they purchase fuel options to hedge cost years in advance to smooth market fluctuations.

SWOT Analysis-Weaknesses

1. SW has highest percentage of full-time employees leading to increased overhead. 2. SW only flies one plane, the Boeing 737. 3. They will not fly outside the continental United States, 63 cities and 32 states. 4. Difficult to convince customers SW offers benefits other airlines do not. 5. Flying only 737s could lead to negative press if problems with that plane arise. 6. Does not accommodate for severely handicapped. 7. Large cities (Atlanta, Charlotte, etc) are without SW service. 8. Does not provide a first class for passengers. 9. Do not provide assigned seating. 10. Only some 737s carry televisions. 11. SouthWest does not offer any type of in-flight meals.

SWOT STRATEGIES-SO 1. Through increased advertising online SW can increase flight bookings (S8, O5). 2. Using a point-to-point system SW can increase flights with business travelers who need timely flights (S3, O9). 3. Use incentives to purchase flights using credit cards to increase profits (S7,O6). 4. Less expensive flights, due to cutting fuel costs by $155M, leave market Capitalization available on areas where airline companies no longer fly due to bankruptcy (S12, O4). 5. Cut ticket cost by $2.00, but add a charge of $2.00 to each extra bag (one allowed) (S4, O10).

SWOT STRATEGIES-WO 1. Hire more part time workers (W1, O11). 2. Add new technology to older planes in order to become up-todate and accommodate the handicapped (W6, O8). 3. With airline companies selling planes SW can purchase models similar to the 737, which could lead to better press if a problem with the 737 arises (W5, O2). 4. Offer in flight meals for those who meet appropriate requirements based on points received from Visa card usage (W11, O6). 5. Install televisions and satellite radio in planes for enhanced customer service (W10, O7). 6. Provide higher quality and luxuries (first class) in some jets for customers willing to pay extra (W8, O9). SWOT STRATEGIES-ST 1. Upgrade our fleet by adding 12 of the similar Boeing 717 jets in order to accommodateto the travelers desiring the luxury of a business class. These jets will be flown in the larger cities with more travel demand with an approximate cost of $700 M. 2. Expand the rapid rewards program to offer one reward point for every three purchases made on the Southwest website at least one month in advance. This will help Southwest in the booking processes so that there will be less complicationsand delays associated with last minute purchases. 3. In order to compete with the luxury airlines offering in flight meals, Southwest will now offer in flight drinks (soda, water, juices, and limited alcohol items) and small snack foods available to the passengers by cash or charge. 4. Make all flights with in the 48 states point-to-pointflights with strict time lines given to the employees in order to alleviate delays. We predict this will increase our percent of ontime flights from 83.96% to approximately90.00%. Then create a marketing program through television and magazines advertising the new policies. NB : For Swot Strategies-ST Im More Confused How To Combine The Strenght And Treahts So I Just Write it Like Above, I Hope Your Understand Sir :D SWOT STRATEGIES-WT Using the code share with ATA airlines begin offering flight to select areas outside the US including (Cozumel Mexico, Select Canada locations, Paris, London, etc.) Shorten the flight life span of the B737s in order maintain planes that are consistently up to date with technology. This will allow us to hedge any risk of negative problems arising with the 737s. Maintaining new equipment allows us to easily liquidate the assets when new items are needed to be purchased. Add new cities not flown to by Southwest such as Atlanta, Charlotte, Chicago, and New York