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Southwest Airlines

In: Business and Management

Submitted By Divij87
Words 551
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Mission: Who are we: Low-cost airline focused on Texas and southwest part of the U.S. Target: people seeking public transportation that would otherwise use other means of transportation. What do they do: Southwest provides transport for small distance flights at a low cost with the most basic necessities for flight passengers in an enjoyable environment and good mood. Why? To provide customers with an alternative to road transports by reducing travel time and an alternative to other companies airlines by reducing costs.
Vision: expand MS from 45% to 55% and expand to new markets. By the 3rd quarter in 1995 we expect to reduce the cost per available seat mile to 6.9 cents of dollars. We expect to increase our total revenues per 10% every year within the next 3 years. We shall get a return on average stockholders equity of 20% in 3 years. We shall increase the size of our fleet to 250 in 3 years and expand our traffic to the east cost.
Strategic objectives:
-Expand to…….
-Maintain……

| Cost per Seat | Return For Shareholders | Total revenues | Fleet Size | 1995 | 7.01 | 17.5% | | 200 | 1996 | 6.95 | 18.5% | | 225 | 1997 | 6.90 | 20% | | 250 |

Sector definition: Low cost airlines in the west of the US, competitors such as USair, continental, united, American airlines, Delta etc and road and rail transportation.
External Analysis: PEST: Political/legal: Government laws regarding aviation safety or airport hubs, customer service. Safety requirements. Economic: The economic situation, higher price of fuel, unemployment rate, price of private transportation etc. Socio-cultural: Ecological factors, reusing tickets as an ecological initiative. Cultural factors. Technological: Wireless technology that could be used to reduce the turnaround time. R&D could come up with a type…...

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