Sale!

Southwest and AirTran Airlines Merger

$20.00 $15.00

The paper talks about two airline companies airtran southwest and which merged to maximize their p.rofits

Category:

Description

Introduction
Southwest Airlines is a United States based airline that is one of the world’s largest low cost carrier. The companies headquarter is located at Dallas Texas. The airline has existed in the market for so many decades. The company has nearly 46000 employees and has the capacity to deal with over 3800 flights per day……………………..

SWOT Analysis
SWOT analysis is a tool that helps an organization to uncover the various opportunities that the company possesses. SWOT analysis also contains the weaknesses of a company and provides the viable solutions that can help to eliminate those particular problems. Through the SWOT analysis, a business can also identify the various threats that business is bound to face and how to surmount those threats (Cooper & Finkelstein, 2009)………………………

Strength
Southwest Airlines and AirTran Band merger brings so many strength that will steer the company forward. First the will have a greater market share and hence has capacity to hire qualified individuals for any position, previously the market was limited because the two…………………………….

Market penetration
The second strength that the company has gained is the market penetration strength. Through the merger, the company will increase the number of flights than before. The two companies Southwest Airlines and AirTran Band had previously been key competitors therefore by merging they will be able to access the previously inaccessible market………………………………………

Diversification in production and human resource skills
Because of the vast skills gained the management of the merging companies, it is possible to diversify production. Through the meager, the companies can offer a wide variety of flight services……………………….

Knowledge and skills
The merged companies have a wide ground that offers a wide ground to share knowledge and skills that can steer the company forward……………………..

Weaknesses
An organizational difference is the first weakness that the two companies faced in its merging strategy. And AirTran Band previously had been stiff competitors and uses various strategies to service in the market. There initiative to merge is a risky phenomenon as failure to formulate uniform strategies can prove to be disastrous to the company. However, this weakness can be eliminated if the management makes a vow to stick on the uniform decision made by the company (Sherman, 1998).
The cost of the merger was quite expensive indeed, the merger involved lengthy legal procedures and even consulting fees. The merger negatively affected the two company’s cash flow………………..