Southwest Airlines Internal and SWOT Analysis
This paper presents an internal and SWOT analysis of Southwest Airlines, examining the company's tangible and intangible resources that underpin its competitive advantage. The analysis covers financial performance, physical assets (notably its all-Boeing 737 fleet), and human resources, highlighting Southwest's philosophy that employees are its greatest strength. Intangible resources discussed include technology investments, ticketing innovation, high-performance workplace relationships, and corporate goodwill through volunteerism and charitable giving. The paper concludes with an overview of Southwest's key strengths, potential weaknesses, and the strategic priorities necessary for sustaining its position as the leading low-cost U.S. carrier.
- Introduction to Southwest's Competitive Strategy: Overview of Southwest's low-cost competitive model
- Tangible Resources: Financial, Physical, and Human Assets: Financial performance, Boeing 737 fleet, and workforce
- Intangible Resources: Technology and High-Performance Relationships: Ticketing technology and high-performance workplace culture
- Corporate Goodwill and Community Engagement: Charitable giving and employee volunteerism programs
- Reputation and Industry Standing: Industry rankings and public reputation management
- SWOT Summary: Strengths, Weaknesses, and Strategic Outlook: Key strengths, weaknesses, and strategic priorities
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What makes this paper effective
- The paper systematically organizes its analysis around a clear framework — tangible versus intangible resources — giving the argument a logical and academic structure that is easy to follow.
- Concrete data points (e.g., 37 consecutive years of profitability, 45,000 volunteer hours, 544-aircraft fleet) ground the analysis in verifiable evidence rather than vague claims.
- The paper draws on a range of source types — company fact sheets, academic books, trade publications — demonstrating source variety appropriate for a business analysis.
Key academic technique demonstrated
The paper demonstrates the use of a resource-based view (RBV) framework, categorizing Southwest's assets into tangible and intangible resources before synthesizing them into a SWOT conclusion. This two-stage analytical approach — first inventory, then evaluate — is a standard and effective technique in strategic management writing.
Structure breakdown
The paper opens by situating Southwest within the low-cost carrier landscape, then moves through tangible resources (financial, physical, human) and intangible resources (technology, relationships, goodwill) in separate sections. It then addresses reputation and industry recognition before concluding with a brief SWOT synthesis. The progression mirrors a standard internal analysis report, moving from asset inventory to strategic evaluation.
Introduction to Southwest's Competitive Strategy
Southwest Airlines has been a major inspiration to other low-cost carriers, and its business model has been replicated many times worldwide. The competitive strategy it employs combines high levels of employee and aircraft productivity with low unit costs by reducing aircraft turnaround time, predominantly at the gate (Bamber, Gittell, Kochan, & von Nordenflytch, 2009). When conducting an internal analysis and SWOT analysis, it is important to examine a company's tangible and intangible resources.
References
Bamber, G. J., Gittell, J. H., Kochan, T. A., & von Nordenflytch, A. (2009). Up in the air: How airlines can improve performance by engaging their employees. Cornell University Press.
Beyman, M. J. (2011). What kind of planes does Southwest Airlines fly? Retrieved from
Fact Sheet. (2010). Retrieved from
Hoffer Gittell, J. (2003). The Southwest Airlines way: Using the power of relationships to achieve high performance. McGraw-Hill.
Southwest Airline Careers. (2010). Retrieved from http://www.southwest.com/html/about-southwest/careers/index.html
Southwest Citizenship. (2010). Retrieved from http://www.southwest.com/html/southwest-difference/southwest-citizenship/index.html
Steinert-Threlkeld, T. (2010). Southwest Airlines: High tech, low costs. Retrieved from
What's reputation worth? Just ask Southwest Airlines. (2011). Retrieved from
World's most admired companies. (2011). Retrieved from http://money.cnn.com/magazines/fortune/mostadmired/2010/snapshots/2068.html
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