External and internal environments
Using publicly available information, with also sources of information fully referenced, conduct a full strategic analysis for SouthWest Airlines as of the year 2020. Be sure to account for all relevant development in the external and internal environments. You must answer the following questions using the SWOT template provided.
1. Conduct a full Internal and External analysis to try to identify the core competence of Southwest Airlines. If you do identify a core competence be sure to provide full justification. (200 marks)
2. Identify any gaps in SWOT coverage and rank their level of importance (50 marks)
3. What strategy should Southwest pursue and what capabilities are needed to pursue this? (50 marks)
4. How should they develop any new capabilities that are needed? (100 marks)
No word Limitation. But Please Please Please write as clear as possible and Cover all needs by following the guideline!
Answer preview
The moderately high bargaining power of customers is influenced by competition. Mainly in group travels, the ticket is bought using the travel agents in which the customers have many airline options (Porter Analysis, 2017, September 14). The cost of switching to competitors’ services is low for individuals and groups (Pratap, 2020, January 3).
Bargaining Power of Suppliers
The bargaining power of suppliers is relatively high based on their capacity to cause price variations. Southwest Airlines buy planes from Boeing, and there are only other few manufacturers (Pratap, 2020, January 3). The fuel suppliers are very powerful. However, some suppliers, like the providers of equipment, technology, and other services, have low bargaining power since they can explore other options.
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External and internal environments
