Southwest Airlines and Ford Motor Corporation: SWOT Analysis

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The response addresses the queries posted in 3243 words with references.

//For this query, you need to select and make a SWOT & Competitor Analysis of two Fortune 500 Companies. For this purpose, you should gather sufficient amount of information from various online and offline sources. Initially, it is needful to provide the introduction of the Company and then to make its SWOT & further, compare it with its competitors. I have selected Southwest Airlines and Ford Motor Corporation, as an example. //

Southwest Airlines and Ford Motor Corporation: SWOT Analysis and Competitor Analysis

In this paper, I have performed a SWOT analysis of two Fortune 500 companies. They are Southwest Airlines and Ford Motors.

Southwest Airlines

36 years back, it was started by Rollin King and Herb Kelleher. The key idea was to make the passengers reach to their destinations at the right time, at reasonably low fares and making sure that they have a good time. Starting from a small airline, it has become one of the leading airlines in America. The success of Southwest Airlines is owing to their low-cost model and it has only coach seats. The company slogan is 'A Symbol of Freedom' (Southwest Airlines Fact Sheet Southwest Airlines Fact Sheet, 2007).

SWOT Analysis

Opportunities and Threats

Major opportunities for the Southwest are:

Increase in business travelers: There had been an increase in the number of people traveling for business purposes; tours and meetings, etc.
Internet advertising: Electronic reservation of tickets brought business and ease to the customers. Payments could be made in the flight and that too at competitive prices. Tickets were easily collected on board, which saved time.
Failure of other airlines and deregulation of flights: Following 9/11, it has been the only airline to report profits every quarter, and one of the few airlines that have no layoffs.
Reputation of the company: It has been ranked as no.1 in terms of customer service, yet the average price of a flight is $87. Southwest has been ranked by Fortune magazine as America's most admired airline since 1997; as America's third-most-admired corporation in 2004 and as one of the top 5 best places to work in America. Southwest's financial results are also shining. The company has been profitable for 31 straight years.
Major threats are:

From competitors such as united Airlines, American Airlines and Delta Airlines.
Change in ticket tax system, which is forced by the competitors: Competitors of Southwest airlines forced the government to enact a law excluding flights from the airport used by Southwest to the airport out of Texas. But the Wright amendment permitted flights to airports including Love field in the four neighboring states of Texas. As a result, Southwest had to become an interstate carrier in 1974. Another legal force was change in the tax system in 1997. Percentage based tax rate was replaced by flat rate and to manage the increased effective tax payments, Company focused on routes having distance more than 1000 miles.
Internal strengths and weakness

Strengths

15 minutes turnaround time, point to point Carrier: Southwest also bucks the traditional hub-and-spoke system and offers only point-to-point service; it chooses to fly to smaller airports that have lower gate fee and less congestion, which speeds aircraft turnaround. Southwest's 15-to-20- minute turnaround time (from flight landing to departure) is half to the industry average, giving it better utilization (flying more flights and more passengers per plane per day).
Commitment by employees: A major strength is the loyalty of the employees and their devotion to the work. They have commitment and work for long hours to manage the stress and quality of work. Employees find it a wonderful place to work where they really like to come and love the work.
Leader in the short haul segment of the industry: It is the only company in the world to offer point to point carrier and is short haul. Southwest developed the policy to serve this segment in effective and economical way. It is also planning to change its trips and launch longer distance trips.
4th rank in U.S.
Low operating costs & inexpensive aircraft: It uses common fleets and is able to reduce its various costs by operating Boeing 737s. Strong point of the firm is sharp focus on the goal of providing a low cost model. For traveling between two cities, it offers cheap and economical rates without providing additional services.
Marketing operations: The market targeted by the Southwest consists of a large market share; it is centered on the people who were flying to small routes and responsive to the price. After research, it did mass marketing in the target market. It targeted the customers who demanded low fares and frequent flights. It followed no-frills approach and low cost airlines, which gave it success.
Management of Company: The Chief Operating Officer of Southwest Airlines, Herb Kelleher, is one of the most admired CEOs of America. He is a fun loving person and has a management style, which is carefree. Employee population has grown to 28000. But in spite of high number, they are treated as the members of one big family. Employees are encouraged and motivated by the regular trip of the team of company. The message of ...