Using an IE and BCG Matrix, we learned that Southwests one of the direct competitor is Delta Airlines. The Matrix showed that Southwest has a competitive advantage in all division segments, except for cargo/fright, whereby Delta is one of the industry leaders. Using a BCG Matrix helped our focus towards cash flow, investment characteristics, and needs of an organizations various divisions. Both matrices allowed our team to focus on targeted strategies that would promote growth and maintain a competitive advantage.

Similarly, a SPACE Matrix was developed for Southwest based on rankings related to the evaluation of financial ratios, stability, competition, and industry position of its competitors, Delta, and American airlines. Using the SPACE Matrix, we could visualize that Southwest Company fells into the aggressive quadrant of the matrix. This explained that the firm is in an excellent position to take advantage of external opportunities, overcome internal weaknesses, and continue avoidance of external threats.

Although Southwest Company is in a great competitive position, it uses a tired strategy that capitalizes on its low cost fare and customer service. While this strategy is a great branding technique and drives customers to use the airline, it cannot sustain itself over time due to changes in demographics and demand. Therefore, maintaining industry leader status the Southwest Company can grow through innovation and differentiation strategies. Using a dedicated team; Southwest can ensure the distinctiveness experience for consumers (of all ages) that flys Southwest. For example, opening international flights to India and Mexico that focuses on international travelers. Bring new demographic while creating a new revenue stream. This recommendation fosters diversification leading to a competitive advantage that supports and manages growth while focusing on new product development.

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