You will begin a four step guided case study for Southwest Airlines. You will need to complete and submit steps 1 and 2 for this order and I will continue place another order for setps 3 and 4 if you done well.
Step 1
Using the case information only, assess Southwest’s industry environment according to Porter’s Five forces. State whether the pressures are high or low for each forces and provide one paragraph on each explaining why. PS: The following video provides an explanation of Porter’s five forces with additional examples sprinkled throughout. Watch this video in conjunction with “SWOT Analysis 1”.
Conclude if the industry is attractive or unattractive and provide justification based on the five forces.
Use section 1 of the “SWOT analysis template” to guide your analysis.
Step 2
Conduct an internal analysis of Southwest Airlines by identifying all the resources you can. Use these resources to form capabilities.
Include insights you have gained from your prior value chain analysis of Southwest Airlines. Place areas of the value chain under resources or capabilities as you deem suitable.
Use section 2 of the “SWOT analysis template” to guide your analysis. Identify and rank order capabilities the firm possesses that can aid competitiveness. The most competitive capability is ranked #1.
There are no word limit guidelines for the Southwest Airlines case assignment part 1 or part 2. However, the goal is to be meaningful and provide evidence you comprehend the case and formulate strategy. Use the template provide and fill in the areas left for the case information. Please don’t just put some simple thoughts, I really need it to be a deep analysis.
Do not use any information that is not provided with the case. Remember we are only using the Southwest case from the coursepack.
Bullet points are preferred. Add a short explanation for any point you include if you feel it to be necessary.
Answer preview
- The threat of new entrants in the US airline industry is low due to political and economic factors. Indeed the legal and regulatory standards for various services, including the aircraft, airports, and professional experiences, offer key barriers for the new entrants (O’Reilly, 1995). For new entrants to achieve significant competitive advantage offering low prices would prolong the period for a significant return on investment.
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