A Case Study Of Brexit

Southwest Airlines operates in the American domestic market. It is well known for its growth over the years. Its mission is the dedication to the customer service of the highest quality that is delivered with a sense of friendliness, company spirit, personal pride and warmth, (Inkpen & Degroot, 2). The airline industry had general environmental factors that do impact it is several ways within the market.

The first one includes the political and legal factors. These include the intervention of the government in the economic operations of the industry. The government intervention is necessary since it protects the interests of the passengers as well as the safety measures of the airline operations, (Inkpen & Degroot, 12). Economic factors are

This has rattled the global financial markets. The stocks of the airline industry have been hit very hard whereby fears of the demand for traveling are slackening. It is expressed by the International Air Transport Association, there are expectations for the passenger market of the U.K. to shrink by 2020 in the band of 3—5% due to the Brexit materializing, (Inkpen & Degroot, 14). The strategy of the Southwest Airlines is to focus on a short-haul passenger and to provide rates that are as low as a third of the competitors. Its HRM strategy is to be using the business model that is very straightforward and rather than having a hub-and-spoke service, they have a point-to-point

It is a problem that will affect the profitability of SWA. This would be by lowering it since it will be experiencing an increased cost. But so as to hedge its exposure to the fuel price fluctuations, SWA will have to make use of the fuel swap. This is an agreement between parties that makes sure that the floating (market) price can be traded over a specific timeframe for a fixed price. The marketing tool by SWA in the “Bags Fly Free” program is made specifically so as to show its clients that they care for them. The first and the second checked bags are not paid for as well as skis and golf bags. This is a tool that favors many passengers and therefore many like SWA for this. Since it is a strategy that benefits them, SWA will hold on to it even in the future.

Despite the challenge with the fuel price fluctuation, SWA has a growth rate that would see it far economically in the future. The acquisition of AirTran clearly explains that SWA will have great heights in the future. This is because the AirTran has helped very much in entering into the international markets. It also assisted in adding 21 cities into the network of the airline whereby 7 of them are lying in the international market. The international presence has led to the expansion of the Southwest to Northern and Central America. The AirTran has also made SWA the largest domestic