Question

Convert the following threat and weakness into a strength:

Weakness: Southwest Airlines only caters to the Budget Traveler.

Threat: Other airlines are trying to imitate Southwest Airlines' strategies.

1. Assume you are the VP of SWA and explain how you would recommend taking that selected weakness and turning it into a strength and the selected threat and turning it into an opportunity.

2. Explain how the weakness and threat turned into a new strength would impact the disciplines of Marketing, Finance, Management and Operations.

Answer 1

Answer: -

Weakness: - Southwest Airlines only caters to Budget Traveler

Threat: - Other airlines are trying to imitate Southwest Airlines' strategies

SWOT parameter 'Weakness' to be changed to 'Strength' and 'Threat' to 'Opportunities'.

Analysis:-

• It is tapping the unexplored market segment having great potential.
• Cost Effective Airline for Budget Traveller going short distance for business trip, short tour or any other short tour is the boon and has less supply for this demand.
• Short tour doesn't require food or refreshment, hence certain customer segment would like to avail this.
• If other airlines are trying to imitate Southwest Airlines Strategies than it proves that Southwest Airline is in opportunity zone and other airlines have not tapped the untapped market segment whose potential is enormous.

Steps: Airlines need to continue doing the good work and include following steps in their strategy to create more barrier to new airline imitate:-
1) Having More Schedule within high demand destination
2) Having schedule within less demand destination but on demanding time schedule
3) Timely starting and reaching destination would increase demand and attract more customer
4) Easy cancelation and option of cancel trip adjustment in future will also attract customer
5) Reducing further price point to frequent travellers
6) Increasing schedule visibility to all class of customer
7) Creating service environment whose customer touchpoint create 'WOW' or 'Delight' experience.

Impact to Marketing: - Airline can use following strength to market and attract more customer:-
1) Destination Reach
2) Timely Start and Destination Reach
3) Discounts to Frequent Travellers

Impact to Finance Changes: -
1) Increase in Marketing Budget
2) Adjusting Discounts to Frequent Travellers
3) Adjusting Cancelation trip and utilising ticket revenue for future use
3) Budget for New Destination, more schedule within high demand destination
4) Budget for resource requirement

Impact to Management: -
More Leads & management professional required for adjusting schedule, developing more destination, etc

Impact to Operation: -

1) New Processes to incorporate new services such as cancelation with future travel adjustment
2) Operational processes for new schedules
3) Operational processes for new timely incoming and outgoing of flights from airports
4) Schedule development and it operational feasibility and effectiveness.