Macro Environmental Factors Affecting Southwest Airlines Essay

1) What macro-environmental factors external to the company should Southwest Airlines be most concerned about? How do these factors affect Southwest Airlines? Explain.

Southwest Airlines is an airline carrier that operates within the American domestic market. It has been the largest domestic Airline, according to the number of domestic passengers and flights. One of the most important macro- environmental factor, which Southwest Airline should be concerned about is demographic factor. As we know Southwest airline has been a domestic carrier through U.S. So, offering more short distance international flights is a good way to increase the bottom line for Southwest Airline. The other important factor that Southwest should be considered is about

It operates 3600 flights a day, serving 95 destinations across the united states, and six additional countries. Southwest Airline advertise itself as a low-cost, low-frills airline with frequent flights to many destinations around the United States. It targets mostly middle class families, small business travelers, and those travelling short distances. People who are looking for the best service for their money. It is known as a low cost carrier for families, tourists, and business men and women to take advantage of low fares. In other words, passengers who are looking for a free checked bags, friendly flight attendant, and competitive fares are the Southwest Airline customers. On the other hand, those with a high income often select first class options over economy class. Because of this targeted marketing, United sells more full-cost fares and increases its overall revenue. I am not sure if offering first class option can be a good option for Southwest, which has an attitude which is called transparency. Transparency is a unique approach to treating customers the way they expected and deserve to be treated, and being a low-fare airline. However, offering more and new short distance international routes seems would be a good solution to increase the bottom line for Southwest Airline. As it is said in Article7 Southwest started offering international flights from Hobby Airport. Adding five new gates for

Replacing the old aircrafts with new and more advanced Boeing 737-800s, has given Southwest airline the opportunity to fly out of U.S., and to find more customers such as tourists and business travelers not only inside the U.S. but outside the country. Second, giving promotions and coupons, such as rewards programs would encourage more customers to use Southwest Airline services, and as a result it would increase the company’s revenue. Trying to stick in customer’s mind as a low cost air line through advertisement would help the company to find new customer as well. Moreover, developing some subsidiary services such as car rentals, or taxi services could help customers to reach faster and easier to the airport, so it would have a positive impact in the customer’s