External Environment Analysis

External Environment Analysis

Introduction

Southwest is one of the leading low cost airs Carrier in the United States. The airline has enjoyed a remarkable growth and profits over the years. Now, Southwest airline is under immense pressure of competition in its United States route. The company revenues decreased dramatically with the increase of competition. Southwest airline has to come up with a unmatched solution to retain the profit and market share (Preston. 2007).

Discussion

PEST Analysis Overview

Legal or the Political Aspects

A part will not be adept to gain achievement, good status and believe if it will not address lawful and political part as part of their strategy. For Southwest airline, political and lawful parts encompass the desires of the part to pursue the granted principles and guidelines of the government in alignment to be advised as lawful and authorized enterprise sector (Alexander, 2007).

Economic Aspects

It is significant that a certain part should furthermore give sufficient vigilance to its financial stability to Southwest airline. The financial component engages the context in which commerce pertains, i.e. the configuration of the affray in which a part functions the hardworking demand of the goods, general financial status of the territory or district, situation in relative with other commerce, and the position of the asset markets.

Financial steadiness

Financial growth

Concern rates

Inflation rates

Exchange rates

Socio-cultural Sector

Society and heritage is also a significant component that should be granted focus by any enterprise, expressly those who are functioning in the international arena like Southwest airline. It is significant that the part should function in compliance with the communal schemes in alignment to gain good status and productive public image. On the other hand, heritage facets are identically absolutely crucial, in alignment to realize the diverse desires of distinct persons that pertains to distinct cultures.

Technological Aspects

The complexities of accomplishing enterprise achievement through expanded ...