The Internal Environment

FACTORS

WEIGHT

RATING

WGTD

SCORE

COMMENTS

STRENGTHS

S1

Luv culture-It makes customers feel part of the company and this enhances loyalty.

0.1

5

0.5

Who does not want a love culture? The company gives employees and customers the freedom to experience a not-so-serious environment which has led to increased loyalty.

S2

Lower cost-The low costs is an identity of the company and it is the reason behind the high number of loyal customers.

0.15

5

0.75

The lower-cost strategy has been significant in the company, making it outstanding in terms of fare rates that has attracted many customers. The high rating for the strength is attributed to its direct link to the company’s high number of customers and its continuous success.

S3

Best employer-The company is ranked as the best. The proper treatment of employees make them give the best services to customers leading to increased customer base.

0.10

4.5

0.45

The best employer is one that gives employees a good working environment. In return, the employees offer good services to customers, leading to customer satisfaction.

S4

Worldwide admiration-In 2019, the company was ranked no. 11 and the most admired in the world. This attracts customers and contributes to the company’s success.

0.05

4

0.2

Although the strength may not be highly significant, customers are more attracted to brands hat are admired by many. Therefore, it is crucial for the company’s success.

S5

Brand value-The company is ranked fourth most valuable airlines in the world and has a brand value of $6.6 billion.

0.10

4.5

0.45

The brand value is significant and makes Southwest airlines to sand out from its competitors. With such a brand value, it is easy to attract new customers and retain existing ones.

WEAKNESSES

W1

Limited diversification-The company depends on a single source of revenue which is detrimental in case of an uncertainty.

0.15

4

0.6

This has been a significant challenge for the company for a long time. Despite efforts, the company remains limited in diversification which affects its profitability.

W2

Overdependence on Boeing 737s-The company has depended solely on Boeing 737 and when there is an issue such as increased accidents, the company suffers a lot.

0.10

4

0.4

In 2019, the company recorded two accidents that led to an emergency stop for the Boeing flights, resulting to significant losses. Up to now, there has not been a permanent solution and the company should strategize on having multiple aircrafts.

W3

Dependence on the US market-As it is said, “Do not put all your eggs in one basket.”The dependence on domestic market can affect revenues. The company does not have international flights apart from the new vacation Islands in Mexico, The Caribbean, and Central America.

0.10

4.5

0.45

The introduction of vacation destinations in Mexico and other places is a great step towards tapping new markets. However , the company has to do more to increase its market share and reduce overdependence on the domestic market.

W4

Operational costs affect income-As the operational costs increase, the company records low profit margins.

0.10

4

0.4

It has been challenging to work on the operational costs considering the low-cost strategy at the company. There is still more to do to balance the low-cost strategy with the increasing operational costs.

W5

Ineffective feedback mechanism-The company lacks an effective feedback mechanism to track market changes in a timely manner.

0.05

5

0.25

The issue of ineffective feedback has been significant, but the company has made notable changes on its mechanism to enhance its feedback. Recently, the company has manage to respond to market changes more effectively.

TOTAL SCORES

1.0

4.45