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Southwest Airline Case Study
Southwest Airline Case Study
Southwest Airline Case Study
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Introduction
Everyone aboard! Southwest Airlines is the fifth nation’s leading airline in the United States and low fare airlines. This company falls under a different class type of airlines, which customers enjoy and “luv” about this company. Southwest Airlines have been a competitive leader in the industry since the company began. This report will point out the strength, weakness, opportunity and threats this company has experienced.
History and Background
Southwest Airlines is an airline firm founded in 1971 by Herb Kelleher and Rollin King. The airline’s mission is to be dedicated to offering clients high customer service by delivering a sense of friendliness, warmth and individual pride. Employees in the firm are offered a stable work
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It is one of the airlines with the lowest prices hence man=king it a pocket-friendly choice of air travel. Workers despite working in unionized systems have been offered a flexible working system where they can negotiate on the working hours that suit them. It is a form of motivation, which gives them morale to work well and enables the firm to achieve higher sales. The firm has maximized the use of the internet for its customer services. Flight bookings and schedule can be easily accessed through the airline’s website (Renga & Mentges, 2010). The growth in technology supports the initiative and makes the processes effective and efficient. Clients are recognized based on the amount of money they spend on the airline. It makes them feel more appreciated, and such clients are likely to come back for the services hence acquiring return customers for the business. The airline uses Boeing airplanes to minimize costs as well as maximize on the discounts offered during the purchase. More money is saved and used on other core activities of the firm. During recruitment, the firm ensures it employs highly skilled personnel for excellent services to the …show more content…
The prices can influence the pricing to clients and make some shift to competitors with lower prices. The competitors have online ticket reservation systems as well which means that Southwest Airline should have a better booking online system to attract the customers. There have been terrorist attacks, and they may target the firm’s airplanes during attacks thus causing huge losses of clients as well as the airplanes.
In conclusion, Southwest Airlines is a firm that has grown over the years and maintained one of the best positions in the U.S market. It has strengths such as well skilled employees and low costs. The weaknesses include such as competition from new and existing airline firms and limited space to ferry freight. The opportunities include diversification of the range of services the firm offers as well as an increase in the number of destinations. The threats involved are terrorist attacks that can destroy airlines and the fluctuating prices of gas and
Another internal challenge for Southwest Airlines is the conflicting management style and business operation with AirTran. On top of that, the external challenges such as the increase of competitions and gas prices are some of issues f...
Southwest Airlines faced many barriers to entry from the fierce competition of other airlines in the industry. Though competition was fierce, Southwest Airlines managed to succeed by doing things differently. Their mission was to provide affordable air travel to those who would not normally fly. Contradictory to the rest of the airline industry, Southwest maintained a profit while keeping its fares low. Southwest was unique to the industry in two ways. They focused on the short haul traveler and used a point-to-point method of flight connections.
Also, Southwest is renowned in the airline industry for its short turnaround time on arrivals and departures. And since people's biggest concern nowadays is money and time, having low price airline tickets to cater their traveling needs in a shorter period of time will surely satisfy them. Moreover, aside from the low prices offered, what attracts customers is Southwest’s way of dealing with them. The employees of the airline treat their customers well and really listen to their needs. Southwest Airlines is also well-known for having a very productive and loyal workforce.
The mission of Southwest Airlines is a dedication to the highest quality of service delivered with warmth, friendliness, individual pride, and company spirit (Mission…, 2007). The company also provides opportunities for learning and personal growth to each employee. Creativity and innovation is very important and highly encouraged, for the purposes of improving effectiveness. Employees are to be provided the same concern, respect, and caring attitude within the organization that the employees are expected to share with the customer. Southwest Airlines was initially created to be a low-cost alternative to high price of intra-Texas air carriers (Freiberg, 1996). Southwest’s fares were originally supposed to compete with car and bus transportation. It was a little airline, and it would withstand the test of time. As a discount, no-frills airline, it would provide stiff competition for larger airlines. Their strategy was to operate at low cost, offering no food, no movies, no first class, and no reserved seats. They created their own market and provided increased turnaround times at the gate, by avoiding hub-and-spoke airports and opting for short-haul, direct flights. Through this market approach, Southwest has a majority of market share in the markets they serve.
Many people ask, “Why I should fly Southwest Airline”. As a frequent flyer of Southwest, I would just respond with “bags fly free and low affordable fares.” Southwest Airlines is the largest affordable carrier which markets the airline alone. Presently, today Southwest is one of the prominent affordable airlines because they believe in providing the best value in price and customer service. Another marketing strategy is that the Airbus carrier flies to over 100 destinations (U.S., Aruba, Belize, Bahamas and more) utilizes as many 686 aircraft fleets.
Moreover, they began this venture with one clear and simple idea/belief: If you get the passengers to the place they want to go, when they want to get there, in a timely manner, with the lowest feasible fares, and ensure they have a fun time doing it, people will want to fly their airline. They were right because Southwest Airlines is one of the biggest domestic air carriers and reputable airline business in the United States. Moreover, it is the only one that is, and has been, endlessly profitable for a number of good years. The key objective of this paper is to highlight Southwest Airlines ability to work and manage people well around
In 1967 after its incorporation, Southwest Airlines wasn’t able to board customers until 1971, due to a lengthy struggle with the court (Southwest Corporate Fact Sheet, 2017). In the United States, Southwest is currently the largest low-cost passenger airlines, launching on high travel days over 3,800 flights daily (Armstrong, 2017). One would agree that Southwest Airlines is a popular airline used by consumers due to discount pricing, bags fly free, package discounts, budget corporate travel, and cargo flights. One would also agree Southwest is considerable for vacationers, frequent fliers, and holiday and business travelers. Offering cheap prices to fly through the United States, Southwest is known for having a philosophy of low pricing
Southwest has one of the highest customer satisfaction ratings in the airline industry (Southwest Corporate Fact Sheet). Southwest has some of the happiest customers in the industry and they stand by Southwest no matter what. Some of these reasons are Southwest’s employees, transparency, and reliability. Southwest is known for being a discount airline. This is usually associated with low fares and low-end service.
Southwest starting their first operation between three Texas cities such as Dallas, Houston and San Antonio. In 2017 southwest has 715 aircraft they are all Boeing 737 to 59 U.S cities. Southwest Airline has the lowest operating cost structure in the domestic airline industry and they are offering lowest and simplest fares in U.S. Southwest airline has the best overall service in U.S that differentiate it from other airlines in USA, this enables them to compete with other low fare companies and
Southwest Airlines is the third airline by number of passengers in the world, the largest airline in the United States on domestic routes and the world's largest low-cost airline. Southwest Airlines is known as the founder of low-cost airlines. Moreover, the company has brought a lot of innovations in the air transport industry. It was the first airlines that abandoned paper tickets, allowed booking seats via the Internet, began using only one type of aircraft, and allowed choose any free seat in the cabin. Every day Southwest Airlines carries out at least three thousand flights worldwide.
Strengths – Southwest Airlines is a market share leader. In 2010, “it transported more passengers from U.S. airports to U.S. destinations than any other airline and offered more regularly scheduled domestic flights than any other airline” (Crafting & Executing Strategy, 2015, p. 736). Southwest also ranked the 2nd best airlines according to the American Customer Satisfaction Index (ACSI) rankings of customer satisfaction (Ausick, 2014). Another strength is that Southwest uses a different approach by putting their employees first and encouraging them to show a friendly, fun loving spirit.
Southwest airline is one of the biggest airlines carriers in the United States, and it has a great market share among its rivals. The success factors of Southwest can be categorized into three areas: highly focused customer services, highly satisfied associates or employees, and their low priced flight tickets. In addition, Southwest Airlines offer their services only through their websites, and customers cannot buy any of Southwest services through third parties channels, which are known as Online Travel Agencies (OTAs). Third party channels or OTAs like Expedia, Travelocity, Priceline …etc, are not allowed to offer the itenaries, prices and services of Southwest Airlines. On the other hand, those OTAs offer the services of most of the airlines
Southwest Airlines has been known as one of the best airlines in the United States. It has been able to preserve a prominent position in the aviation industry with having a consistency in profitability for over 41 years. This is mostly because of the unique strategies Southwest adopted. They adopted to have a low-fare cost, no frills, but yet an excellent customer service. Southwest is not just a great company without flaws; it’s flawed just as the other airlines.
Introduction Southwest Airlines was founded in 1967 and is one of the nation’s leading point -to- point travel providers of today. Southwest Airlines employs approximately 53,500 people, has a revenue of $20.2B, serves more than 100 million customers annually (business insider, 2017). As of December 31, 2016, Southwest operates a total of 723 Boeing aircraft and served more than 101 destinations in 40 states, and 8 near-international countries. (Reuters, 2017).
They are always looking to make adjustments. They have differentiated themselves in the aviation industry. Southwest Airlines will continue economic and operational challenges, but they have successfully overcome them in the past, and will continue to do so. Southwest strives to follow the Golden Rule for their customers as well as their employees. In February of 2017 Fortune, for the 23rd consecutive year named Southwest Airlines as #8 in the list of World’s Most Admired Company.