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NATIONAL AMERICAN UNIVERSITY
STRATEGIC MANAGEMENT
SUMMER 2005
SOUTHWEST AIRLINES CASE STUDY
INDUSTRY & COMPETITIVE ANALYSIS
Driving Forces

1. Entry/exit of major firms: The airline industry has many entry barriers so the dangers associated incoming airlines are low. Lately, however, there have been many airlines exiting which causes fierce competition to gain their customers.

2. Changes in cost and efficiency: Cost of fuel, increasing inflation, increasing interest rates, maintenance costs, safe flights, and timely arrival and departures all play a major role in the airline industry

3. The internet: The internet enables flyers to go online and do more comparative shopping for good prices, flight schedules, and flight destinations. It is also more user friendly for businesses.

4. Strong regulatory/political/governmental/societal influences: Because of the incidents of 911, the government has cracked down on flight as well as preflight security. It has......

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Approximate Word Count: 3024
Approximate Pages: 13 (250 words per double-spaced page)

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