What are the key industry conditions which render profits elusive for airlines?
From its humble roots, Southwest Airlines has emerged as a major airline in the U.S. In an industry where failure is more common than success, the company has achieved steady growth and an impressive performance record. With no reprieve from intense competitive pressure in sight, Southwest needs to determine if its technological innovations, procedural improvements, managed price hikes, and acquisition activity are sufficient to overcome looming challenges in the industry.
1. What are the key industry conditions which render profits elusive for airlines?
2. Does Southwest Airlines have a durable competitive advantage?
3. Do recent issues (such as safety violations and a labor union dispute) signal inherent weaknesses at Southwest or demonstrate the company's strength at handling threatening situations as they emerge?
4. How can Southwest achieve long-term strategic competitiveness against its rivals?
5. What strategy (or strategies) should the company use to continue its growth?
6. Is Gary Kelly the right person to head up Southwest Airlines at this time?