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Southwest Airline comprehensive external environment analysis
Pages 5 (1255 words)
Name: Instructor’s Name: Course: Date of Submission: Southwest Airlines – External Environment Analysis External Environment There are a number of factors which may affect Southwest Airlines in their external environment. The external environment comprises of three major segments: remote, industry and operational.
Though the local political affairs are usually kept under control, there are numerous other issues that do not lie within the company’s hands. The perpetual rise in the fuel prices has always remained a major issue for Southwest. The unpredictable nature of the fuel prices is hugely attributed to several external factors which are usually not within the control of the company. The fuel prices are hugely driven by political agendas of the oil supplying nations and it may have varying results for the airline industry since oil is the major expenditure that an airline company has to endure in order to operate effectively and efficiently. Economic Factors The aviation industry within the United States of America has been a major contributor towards improving its country’s economy. According to a study issued by the International Air Transport Association (IATA) in May 2012, the airline industry has almost contributed $669.5 billion (4.9%) to the U.S. economy. Of this amount, almost 31% was contributed by airlines, airports and airline concerned services. The current era in which Southwest operates, fuel is presumably the main issue for not only Southwest airline but the entire aviation industry. ...
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