Southwest
Southwest Airlines
1. At the beginning, what forces in the environment most affected Southwest Airlines, and what opportunity was Southwest founded to take advantage of?
In order to see the clear picture of which forces affected Southwest Airlines the most in the beginning, we will analyze the environment or external factors by applying SPEELT.
SPEELT ANALYSIS
Social Factors.
The social attitude towards the air travel has changed. Not only the rich people could travel by plane, but the rest of people also could fly if the price of air ticket was affordable, people would think of the airplane when they would like to travel. This factor attracted more people to be the customers of low-cost airlines.
Political factors
The United States of America has an open policy towards the airline industry. There is not any policy to block or hamper any airline. Therefore, there are many competitors and new comers in the industry. In order to capture the majority of market share, each airline has to provide and develop the service to satisfy customers.
Economic factors
The economic is increasing so the people have more income and more power to choose the products. They spend money more easily. Moreover, if the economic is growing, it also attracts the investors to enter in the industry.
Environment factors
The environment factors also affect the airline industry. Some airports have set the airport restriction to limit noise as well as the restriction of aircraft
to use. This environment regulation can increase the cost of Southwest and limit the ability to expand its operation to the mentioned airports.
Legal factors
Before the deregulation, Southwest Airlines has been blocked by the competitors to come into the industry. King and Kelleher fought very hard to make their company...
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