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Southwest Airline Case Study
Southwest Airline Case Study
Southwest Airline Case Study
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Recommended: Southwest Airline Case Study
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
Southwest Airlines: A Case Analysis. ORGANIZATIONAL ANALYSIS It is evident that the greatest strength Southwest Airlines has is its financial stability. As known in the US airline industry, Southwest is one of those airlines who are consistently earning profits despite the problems the industry is facing. With such stability, the corporation is able to make decisions and adjust policies, which other heavily burdened airlines may not be able to imitate.
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.
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.
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
In this report the two Low Cost Carriers such Jet star v Southwest, will be compared and contrast such as different approaches to their market place, competition and aircraft operating strategies in the light of their ownership. Jet star is owned and controlled by Qantas internationality and domestically where Southwest is a major U.S airline that primarily provide short haul, high frequency, point to point, low fare service. Company overview Southwest Airline Southwest Airline is a major U.S airline that primarily provides short haul, high frequency, point to point, low fare service. Southwest is located in Texas and commenced their operation on June 18,1971 with three narrow body airline Boeing 737 aircraft.
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.
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
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.
Introduction Southwest Airlines or Air Southwest Co. was incorporated in 1967 ("1966 to 1971", 2018). However; it was not until 1971 until Southwest was able to take their first flight (Dess, McNamara, & Eisner, 2016, P.C7). Nonetheless Southwest Airlines(SWA) received a win to be able to fly, SWA had other things to worry about, a regulation that penalized SWA for operating out of Dallas Love Field. After much lobbying at the House of Representatives, SWA had another win in 1979, stating that they were allowed to operate out of Dallas Love Field. (Dess, McNamara, & Eisner, 2016, P.C7).
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.
The mission at Southwest Airlines is “dedication to the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride, and company spirit.” (Southwest Cares, 2008). At southwest they believe that there is one thing that they value more than their customers – and it’s their employees. Southwest is committed to provide their employees a stable work environment with equal opportunity for learning and personal growth. Creativity and innovation are encouraged for improving the effectiveness of Southwest Airlines.
In these days, there are many people who prefer to go out their countries and explore the world. It is because people recently seek for a better life; they motivate themselves by having fun experiences or traveling. According to IATA (2013), “by 2017 total passenger numbers are expected to rise to 3.91 billion — an increase of 930 million passengers over the 2.98 billion carried in 2012.” As the number of tourists increases, therefore, many airline organizations are created during last few years to offer transportation to tourists. Because there are many airline companies that provide similar products and services, each airline needs to have competitive advantages to survive in the tourism industry.
Southwest Airlines Little did Southwest Airlines know that on June 18, 1971, they would become well known for providing customer service with a sense of warmth, friendliness, individual pride, and company spirit. Herb Kelleher, the founder of Southwest Airlines, created the business model for Southwest on the back of a cocktail napkin. The business model transformed the aviation industry by providing regional air service at an affordable price with reliable service. In the past forty-four consecutive years Southwest has displayed their fundamental success, economic conditions and operational challenges, and their future trends in order to maintain continued profitability.
With 45 sequent years of profitability, Southwest is one of the most extolled airlines in the world, known for a triple bottom line approach that contributes to the carrier's performance and productivity, the importance of its People and the communities they serve, and an overall commitment to efficiency and the planet. (southwest.com,2017) . Employee is more important :- Southwest puts its employees first in terms of interest and customers second and third shareholders. It is an idea and arrangement of more than excellent for any company or institution that wants to increase profitability and productivity.