Preview
Preview

Southwest Airlines Essay

No Works Cited
Length: 1737 words (5 double-spaced pages)
Rating: Blue      
Open Document




- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Southwest Airlines, Key Facts:
Niche strategy. Concept:
• Concentrate in underutilized airports
• 1 type of aircraft – fuel-efficient 737 (1994 – more that 200 planes)
• Frequent, on-time departures
• Low cost fares, only 2 types of fares per root
• No seats assigned, no meals
• Point-to-point roots
• Higher equipment initialization, shorter turn-around times
Competitive advantage:
• Cost structure
• "The workforce is dedicated to the company. They're Moonies basically. That's the way they operate."
Issue: New Competition. Other US airline companies started to imitate Southwest Airlines and created their own low cost carriers (for example: Continental Lite and United's Shuttle).

How has Southwest used OB ideas to secure a competitive advantage?
In the past when Southwest was unique in its approach to airline service, the company did not really have competitors within the airline industry (of course, Southwest had rivals, but the company managed to find its' place on the market). As one of the managers said, they were competing more with on-land transportation means (such as busses and trains) rather than with other airlines. From 1980s the situation in the airline industry started to become more unfavorable with companies loosing money and going bankrupt. At that time American airline companies realized that they can probably deal with these problems by copying the Southwest Airline's concept (as Southwest has been profitable in all years of its; operations). In the first part of 1990s two companies – Continental and United launched their own low cost carriers and Southwest was concerned with the new competition. In fact these companies had plenty of time to analyze Southwest's model and they could copy their ...


... middle of paper ...


... or that position. (as others' airlines employees were complaining that pilots and flight attendants were accommodated in different level hotels and pilots were always on fight with mechanics). If the teamwork is so important for the company, providing training on teamwork and building the team (what Southwest did) is also really important.
There are many other things to talk about, but I would like to conclude that Southwest people were company's most important asset. And Southwest having all the operations and processes set up to be a low cost carried would never succeed without contribution made by its' employees and managers. Therefore, as long as Southwest's competitors will copy company's methods of cost cutting (1 plane, point-to-point destination and so forth) without having strong company culture and committed employees, Southwest has little to worry about.


Click the button above to view the complete essay, speech, term paper, or research paper

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »







This essay is 100% guaranteed.


Title Length Color Rating  
History of Southwest Airlines Essay - More than 32 years ago, Rollin King and Herb Kelleher got together and decided to start a different kind of airline. They began with one simple notion: If you get your passengers to their destinations when they want to get there, on time, at the lowest possible fares, and make darn sure they have a good time doing it, people will fly your airline. And you know what. They were right. What began as a small Texas airline has grown to become one of the largest airlines in America. Today, Southwest Airlines flies more than 65 million passengers a year to 59 great cities (60 airports) all across the country, and they do it more than 2,800 times a day....   [tags: Voices of Southwest Airlines] 1181 words
(3.4 pages)
Strong Essays [preview]
Essay on The History of Southwest Airlines - The History of Southwest Airlines Southwest Airlines (SWA) begins in June 18, 1971, when SWA first operated a first airline consul between Houston, Dallas and San Antonio. Rollin King and Herb Kelleher are the founders of the company. The end of 1971 SWA immediately began to expand. In 1972 all Houston service is transferred to Houston's Hobby Airport form Houston Intercontinental, that is make more convenient for people to fly. During the first year of operations the customers were the Southwest's first priority....   [tags: Southwest Airlines Aviation Airplanes Essays] 3808 words
(10.9 pages)
Strong Essays [preview]
The Archetypical Low-Cost Air Carrier: Southwest Airlines Essay - Abstract The seventh largest major domestic airline in the United States (US), Southwest Airlines, is commonly known or referred to as a low-cost carrier. Southwest Airlines is the only major airline that provides short-haul, point-to-point service in the United States. In fact it was the first airline of its type ever started; it has become the archetypical low-cost airline. The idea has proven itself so well, that other start-up airlines have based their company strategies upon the basics of Southwest....   [tags: Aviation Southwest Airlines Flying Essays]
:: 6 Works Cited
3920 words
(11.2 pages)
Strong Essays [preview]
Essay on Analysis of Southwest Airlines - Air transport is a global industry and as such every airline is a likely challenger for every other. It is contrary to expectation that any airline will be able to contest on a large scale without being associated to other carriers. Traffic feed is the industry's lifeblood and stand-alone carriers will be labored to carry low-revenue point-to-point traffic when front with airlines able to offer manifold route alliances. Southwest Airlines is a major carrier to the USA accounting for about 85% of its airfreight tonnage, but it also operates scheduled services to South Africa, Japan and Hong Kong....   [tags: air transport, aviation, airlines]
:: 1 Works Cited
807 words
(2.3 pages)
Better Essays [preview]
Southwest Airlines' Sustainability and Future Essay - Southwest Airlines’ Sustainability and Future “The mission of Southwest Airlines is dedication to the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride, and company spirit (Southwest Airlines, 2009).” Since its conception in 1971 by founders Rollin King and Herb Kelleher, Southwest Airlines has stood by their mission statement. The simplistic belief of "If you get your passengers to their destinations when they want to get there, on time, at the lowest possible fares, and make darn sure they have a good time doing it, people will fly your airline (Southwest Airlines, 2009)” has served Southwest in becoming a major competitor in the airlin...   [tags: Southwest Airline Industry Case Study] 2038 words
(5.8 pages)
Powerful Essays [preview]
Essay Southwest Airlines - Introduction Southwest Airlines was incorporated in Texas and commenced Customer Service on June 18, 1971 with three Boeing 737 aircraft serving three Texas cities-Houston, Dallas, and San Antonio. Today, Southwest operates 537 Boeing 737 aircraft between 68 cities. Southwest topped the monthly domestic originating passenger ranking for the first time in May 2003. Year-ending result for 2009 marked Southwest 37th consecutive year of profitability. Southwest became a major airline in 1989 when it exceeded the billion-dollar revenue mark, Southwest is the United States’ most successful low-fare, high frequency, point-to-point carrier....   [tags: Business, Organizational Capacity, Success] 2407 words
(6.9 pages)
Powerful Essays [preview]
Southwest Airlines Essay - Southwest Airlines Executive Summary Southwest Airlines is currently the fourth largest airline in the United States. It flies over 64 million passengers a year, which makes 2,700 passengers a day, traveling to 58 cities. Southwest is the only major carrier to remain profitable in every quarter since 9/11, opposed to many other companies who have declared bankruptcy. It is an influential company that has greatly contributed to the development of the commercial airline industry. This industry has grown at an average rate of 5% over the past 20 years....   [tags: Essays Papers]
:: 10 Works Cited
1908 words
(5.5 pages)
Powerful Essays [preview]
Essay on Southwest Airlines - Southwest Airlines 1.) Many changes have occurred and are occurring in the airline industry, which pose a potential threat to Southwest Airlines. The airline industry has traditionally had many airlines receive annual loses on their income statements. This trend is still continuing today as many airlines stand in financial trouble. Some of these financial troubles arise from changes brought upon them from the ever-changing governmental regulations. The most recent change in governmental regulations that will have the largest effect on Southwest Airlines is the change in the federal ticket tax in 1997 on flight routes that are one thousand plus miles....   [tags: essays research papers] 388 words
(1.1 pages)
Strong Essays [preview]
Essay on Southwest Airlines - This is the historic background of an American Airline company called the Southwest Airlines Co. based in Dallas which still exists and operates with great success between 57 cities in 26 states of the US, by over 300 airplanes , providing primarily short-haul, high frequency, point to point, low fare service . Through this essay we will see an analysis of the company’s advantages and disadvantages through a SWOT Analysis. We will try to localize the problems of the company at the time and in the case of a future expansion, and we will try to give a number of alternative solutions and chose one of them....   [tags: essays research papers fc]
:: 3 Works Cited
2969 words
(8.5 pages)
Powerful Essays [preview]
Essay about Southwest Airlines - Southwest Airlines strategy of focusing on short haul passenger and providing rates as low as one third of their competitors, they have seen tremendous growth in the last decade. Market share for top city pairs on Southwest's schedule has reached 80% to 85%. Maintaining the largest fleet of 737's in the world and utilizing point-to-point versus the hub-and-spoke method of connection philosophy allowed Southwest to provide their service to more people at a lower cost. By putting the employee first, Southwest has found the key to success in the airline business....   [tags: Business Model Strategy Analysis] 930 words
(2.7 pages)
Strong Essays [preview]