SWOT Analysis
Acronym for strengths, weaknesses, opportunities and threats. Based on assumption an effective strategy derives from a sound “fit” between a firm’s internal resources and its external situation
Opportunities
A major favorable situation in a firm’s environment
Threats
A major unfavorable situation in a firm’s environment
Strengths
A resource advantage relative to competitors and the needs of markets firm serves
Weaknesses
A limitation or deficiency in one or more resources or competencies relative to competitors
Good Strategies
Those that support the mission and
Exploit opportunities & Strengths
Neutralize threats
Avoid Weakness
(Source: Management, Ricky W. Griffin, Houghton Griffin Company, NY, Page: 235-238)
To make a good SWOT analysis it is necessary to examine a company’s various kinds of business related issues like:
Customer care,
Production efficiency
Staff resource & skills
Delivery times
Ability to raise funds
Plant, Equipment & vehicles.
Stock control
Quality control
Internal communication
Managerial efficiency
Financial structure
Use of assets
Human Resources. Etc.
(Source: Strategic Management in Ireland, Michael J. Morley & Noreen, Gill & Macmillan Ltd, p: 30-94)
So now it can be observe and analyze that how Southwest Airlines handled this kind of issues
Potential resource strengths and competitive capabilities:
Strength is something a company can do well; a characteristic that gives it enhanced competitiveness and specifically enables to deal with external opportunities and threats. These includes what kinds of resources they have and how they use these it.
The most important resources are their air crafts(Boeing, Jets) they have. Southwest currently operates 479 Boeing 737 jets. The Company’s fleet has an average age of about 9 years. The average trip length of aircraft is 625 miles with an average duration of one hour and 37 minutes. Southwest aircraft fly an average of seven...