![]() Thereby, the increasing number of customers using the airline services has swelled the bargaining force of buyers. The increase in ratio in the year 2018 was 4.8% higher as compared to 2017, and 8.5% increase from the year 2016. The figures reveal that the passengers crossed 1 billion in the US who used international-based or US-based airlines. ![]() The data shows that the number of passengers who travel from and to the US is increasing. The aviation industry has observed a steady increase in this force due to the growing number of customers. This force in Porter’s model measures the power of customers to influence the company. On the other hand, suppliers providing the airline with fuel may exert a strong force of bargaining power. Nonetheless, these suppliers exert a weak force because such suppliers are available in substantial numbers, and Southwest doesn’t depend on a single source to obtain raw materials, technology, or equipment. The airline is further dependent on other suppliers for equipment necessary for the operations like technology or raw materials. However, this high bargaining power is cross-checked by Southwest’s strong power to purchase. As of today, Southwest has almost 750 Boeing 737 aircraft with passengers ranging from 150-to 175.Īs Boeing is the leading supplier in the aviation industry, its bargaining power is relatively high. It best suits the Southwest company owing to its low-cost pricing strategy. This model is highly efficient in operation and specializes in fuel efficiency. The company uses the aircraft model Boeing 737. Airbus, besides Boeing, is the leading aircraft manufacturer, and overall, these suppliers have accumulated high bargaining powers. The main suppliers include Boeing, Airbus, Bombardier, and Embraer. Miniature aircraft manufacturer suppliers capture the aviation industry. The five forces analysis of Southwest airlines signifies the importance of these forces prevalent in the external environment and their role in determining the competitiveness of the company. The strength of any company, mainly the competitional horizons, is determined by many strategic factors, including efficient operations based on low-cost provisions for customers. The company hit the spot when in 2018, about 163.6 million passengers used the airline service of the company. The company has swept the market by providing low-cost services and customer friendliness. This period has enabled the company to establish competitiveness in the market. The business started in 1971 and is growing continuously to date. The provisions of convenience, customer safety, and quality service are the marked mission statements of the company’s chief. The airline has its headquarters in Dallas, Texas, and is currently providing services to more than 121 destinations with operations in ten more countries. Despite the intense competition in the US aviation industry, the company has firmly retained its leading position in the US and across the globe as a low-cost carrier airline. Southwest will publish first quarter results on 27 April.Southwest Airlines, a US-based airline, is playing a leading role in the aviation industry. The airline cancelled 16,700 flights, stranding hundreds of thousands of air travellers. But while other airlines recovered quickly, Southwest’s crew-scheduling system broke down, forcing it to drastically reduce capacity during the peak holiday travel period.įollowing the incident, Southwest pledged to invest $1.3 billion into new technology systems to ensure that a similar event – which cost the company $800 million - does not happen again. Over the busy end-of-year holiday season, Southwest suffered a widespread operational meltdown after a severe winter storm disrupted travel across the USA. It’s not the first time Southwest has had problems with its information technology systems. “Southwest teams worked quickly to minimise flight disruptions.” “Early this morning, a vendor-supplied firewall went down and connection to some operational data was unexpectedly lost,” the company says. Later in the day, Southwest said it had resumed operations “after temporarily pausing flight activity… to work through data connection issues resulting from a firewall failure”. New technology issue briefly grounds Southwest aircraft nationwide ![]() ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |