Southwest Airlines SWOT Analysis, Competitors & USP

Published by MBA Skool Team, Last Updated: August 26, 2021

SWOT analysis of Southwest Airlines analyses the brand by its strengths, weaknesses, opportunities & threats. In Southwest Airlines SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.

SWOT Analysis is a proven management framework which enables a brand like Southwest Airlines to benchmark its business & performance as compared to the competitors. Southwest Airlines is one of the leading brands in the airlines sector.

The article below lists the Southwest Airlines SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the Southwest Airlines SWOT Analysis:

SWOT Analysis of Southwest Airlines

For Southwest Airlines, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position.

Southwest Airlines Strengths

The strengths of Southwest Airlines looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Below are the Strengths in the SWOT Analysis of Southwest Airlines :

1. Southwest is one of the largest airline brands in the world

2. Southwest airlines is recognized for offering low-cost travel to travelers

3. The company has its reach to more than 100 destination in the USA

4. Apart from USA, Southwest has its flights flying to 10 countries

5. The company has more than 50,000 employees

6. Due to very streamlined process, the airline operator receives very few complaints as compared to other air carrier

7. Southwest's business model of low-cost air travel has been a major inspiration to many companies worldwide

8. As a part of its experience, the aircrafts offer Wi-Fi, entertainment, movies, games, music etc.

9. The company has a very effective marketing via several channels like TV, print ads, online ads and ecommerce portals

Southwest Airlines Weaknesses

The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Here are the weaknesses in the Southwest Airlines SWOT Analysis:

1. Strong competition from other low cost carriers means limited market share growth

2. Dependence only on the American market means limited customer share of travelers


Southwest Airlines Opportunities

The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Following are the opportunities in Southwest Airlines SWOT Analysis:

1. Expansion to other cities with the USA can help boost its business

2. International flights and global expansion can help increase the revenue for Southwest airlines

3. Tie-up with international airline companies to offer global air travel at affordable prices

Southwest Airlines Threats

The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. The threats in the SWOT Analysis of Southwest Airlines are as mentioned:

1. Operating costs can increase and hence air fare will increase

2. Increase in fuel prices can lead to loss of margins for Southwest

3. Changing economic policies, recessions & pandemics can affect the tourism sector, thereby impacting their revenue


Southwest Airlines Competitors

There are several brands in the market which are competing for the same set of customers. Below are the top 5 competitors of Southwest Airlines:

1. United Airlines

2. American Airlines

3. JetBlue Airways

4. Delta Airlines

5. Virgin Atlantic

Hence this concludes the Southwest Airlines SWOT analysis.

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About Southwest Airlines

Southwest Airlines Overview
Parent Company

Southwest Airlines Co.

Category

Domestic

Sector

Airlines

Tagline/ Slogan

Love is Still Our Field; Just Plane Smart; THE Low Fare Airline

USP

Largest low cost carrier in United States

Southwest Airlines STP
Segmentation

Price sensitive passengers

Target Market

Middle income people looking for affordable travel

Positioning

Low cost American airlines connecting various destinations


This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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