BUSINESS STRATEGY
CASE STUDY ANALYSIS
SOUTWEST AIRLINES
BURHAN GOCER
INDEX
1 INTRODUCTION ………………………………………………………………………………………………………………. 4
2 VISION AND MISSION 1988 ………………………………………………………………………………………………. 5
2.1 Vision of Southwest Airlines ………………………………………………………………………………………. 5
2.2 Mission of Southwest Airlines ……………………………………………………………………………………. 5
2.3 To Their Employees ………………………………………………………………………………………………….. 5
3 NEW VISION AND MISSION ………………………………………………………………………………………………. 5
3.1 Vision of Southwest Airlines ………………………………………………………………………………………. 5
3.2 Mission of Southwest Airlines ……………………………………………………………………………………. 5
3.3 To Their Employees ………………………………………………………………………………………………….. 6
4 SITUATION ANALYSIS ……………………………………………………………………………………………………….. 6
5 1st Stage …………………………………………………………………………………………………………………………. 6
5.1 External Factors ……………………………………………………………………………………………………….. 6
5.1.1 Opportunities …………………………………………………………………………………………………… 7
5.1.2 Threats …………………………………………………………………………………………………………….. 8
5.2 Internal Factors ……………………………………………………………………………………………………….. 8
5.2.1 Strengths …………………………………………………………………………………………………………. 9
5.2.2 Weakness……………………………………………………………………………………………………….. 10
5.2.3 Key Ratios ………………………………………………………………………………………………………. 10
5.3 Critical Success Factors ……………………………………………………………………………………………. 11
6 2nd Stage ………………………………………………………………………………………………………………………. 12
6.1 IE-MATRIX ……………………………………………………………………………………………………………… 12
6.2 SWOT ANALYSIS ……………………………………………………………………………………………………… 13
6.3 SPACE-MATRIX……………………………………………………………………………………………………….. 13
7 3rd Stage …………………………..…………………………………………………………………………………………… 15
7.1 QSPM ……………………………………………………………………………………………………………………. 15
8 IDENTIFICATION OF THE PROBLEM ………………………………………………………………………………….. 15
9 RECOMMENDATION OF THE STRATEGY ……………………………………………………………………………. 16
10 IMPLEMENTATION …………………………………………………………………………………………………….. 17
1 INTRODUCTION
Southwest Airlines Co. is the United States’ most successful low-fare, high frequency, point-
to-point carrier, which started to offer flights with three Boeing 737 aircraft to the three
biggest cities in Texas (Houston, Dallas and San Antonio) in the year 1971. However, the
Southwest Airlines was already conceived in the year 1967 by Rollin King and his lawyer Herb
Kelleher.
Today, Southwest operates more than 536 Boeing 737 aircraft between 67 cities in 34 states.
Southwest, the 6th largest U.S. airline by revenue, maintains the second-largest passenger
fleet of aircraft among all of the world’s commercial airlines. More than 3,300 flights a day
coast to coast make the Southwest Airlines the largest U.S. carrier based on domestic
departures, which has more than 35,000 total Employees throughout the Southwest system.
Furthermore, Southwest Airlines Co. is dedicated to the highest quality of Customer Service
delivered with a sense of warmth, friendliness, individual pride, and Company Spirit.
2 VISION AND MISSION 1988
2.1 Vision of Southwest Airlines
To have a conservative increase growth, capitalize and cutback schedules of other airlines.
To continue expanding conservatively in long-haul success.
2.2 Mission of Southwest Airlines
“The mission of Southwest Airlines Co. is dedication to the highest quality of Customer
Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit.”
2.3 To Their Employees
“We are committed to provide our Employees a stable work environment with equal
opportunity for learning and personal growth. Creativity and innovation are encouraged for
improving the effectiveness of Southwest Airlines. Above all, Employees will be provided the
same concern, respect, and caring attitude within the organization that they are expected to
share externally with every Southwest Customer.”
3 NEW VISION AND MISSION
