Southwest Airlines Case Study Essays

Southwest Airlines Case Study Essays

Length: 1814 words (5.2 double-spaced pages)

Rating: Powerful Essays

Open Document

Essay Preview

Southwest Airlines Case Study


Marketing. Marketing savvy also plays a key role in Southwest's strategy. Since Southwest's inception, the major elements of the product offering have been price, convenience and service. As a Texas native serving mostly Texas markets, it has played the role of the hometown underdog, fighting against the majors. Now, when Southwest enters a new market, they use a sophisticated combination of advertising, public relations, and promotions in the belief that once people fly Southwest they will be hooked.
Growth. Despite its remarkable growth in what had been until recently a relatively moribund industry, Southwest has not emphasized growth as an objective. In fact, Herb Kelleher expresses a "go-slow" philosophy. For example, Southwest will not enter markets unless it perceives favorable conditions, which range from the wishes of the local community to the availability of an appropriate labor supply. Given its record of success and its reputation it is not surprising that there are many communities that want Southwest to serve their markets. After all, good air service is considered by most communities to be an essential aspect of economic development. However, Southwest's policy prohibits accepting monetary subsidies or other incentives that cities and airports offer to gain air service. Southwest has also demonstrated a remarkable ability to manage its growth, an essential commodity in an industry known for its complexity. The inability to manage rapid growth has been blamed for the failure of many carriers, including Braniff, PeopleExpress and ValuJet
Technology. Like all airlines, Southwest is a very heavy user of computer-related technology. This technology supports all activities ...


... middle of paper ...


...ronment is changing, people are traveling again and with improving opportunities, it is looking for and jumping on opportunities as other airlines struggle to be simply profitable as fuel costs rise and fares shrink. Kelly also faces significant threats: low-cost carriers JetBlue and AirTran Airlines are also looking to expand in the same markets. To do so, he is asking for more productivity from already efficient employees and asking pilots to fly as many as 70 hours a week for less money than they could make at other carriers. KellyƳ strategy to link up with ATA stunned the market and the industry
Moving into 2005, Southwest was facing many familiar challenges: rising oil prices, intense competition, cumbersome regulations. In the uncertain times that had legacy (traditional) carriers reeling, Southwest was still winging ahead with its ever-popular low-fare formula

Need Writing Help?

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

Check your paper »

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]

Powerful Essays
2038 words (5.8 pages)

Southwest Airlines Essay

- Executive Summary Southwest Airlines is competing with "Shuttle by United" head to head in about 9 routes. United has just announced that it is discontinuing its Oakland - Ontario route and hiking the fares in all the 14 routes by $10, which calculated to be 14.5% increase in the fare. Southwest has to respond effectively to these unexpected developments and has to act accordingly while maintaining their current low fare image and increasing their daily operating profits. We have considered the elasticity of the market to be 1.15....   [tags: Case Study]

Free Essays
1197 words (3.4 pages)

Southwest Airlines Essay

- Southwest Airlines In the airline industry, Southwest Airlines is considered a true innovator. By shaking up the rules of flying and improving upon inefficient industry norms, Southwest has quickly grown by leaps and bounds. From the very start, Southwest Airlines' goals were to make a profit, achieve job security for every employee, and make flying affordable for more people (Southwest,2007). Southwest has not strayed from these goals. It does not buy huge aircrafts, fly international routes or try to go head to head with the major carriers; and thanks to a great planning, Southwest airlines has become the most successful airline company in the U.S., if not the world....   [tags: Business Case Study Analysis Management]

Free Essays
1119 words (3.2 pages)

Southwest Airline Merger With AirTran Essay

- I. Introduction Southwest Airlines has come from an underdog to being one of the best airlines in the industry. This reputation translates from its strategic management of resources. The Co-founder and former CEO, Herb Kelleher, established a unique corporate culture that leads to high customer satisfaction, employees’ morale, and one of the most profitable airlines in the industry (Jackson et al., 2012). The corporate culture concentrates on empowerment the workforce. It shows through Southwest Airlines core values that “happy employees lead to happy customers, which create happy shareholders” (Jackson et al., 2012)....   [tags: Case Study]

Powerful Essays
1448 words (4.1 pages)

Southwest Airlines Essay

- 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....   [tags: Company Business Analysis Management]

Powerful Essays
1737 words (5 pages)

Essay on Southwest Airlines

- Strategic Issue Southwest Airlines has never deviated from its niche: short-haul, high frequency, low-fare service, all delivered with award-winning customer service.1 -- Herbert D. Kelleher, Chairman, President, and CEO Southwest's current strategy is to position itself as a cost leader with a focus strategy. The company's management and employees aim to cost-effectively and reliably fly large number of customers on short, non-stop flights, and to have fun doing it. They are devoted to making flying available to everyone....   [tags: Business Strategy Analysis]

Free Essays
1483 words (4.2 pages)

Essay on JetBlue Case Study

- Individual Case Analysis JetBlue Headquarters, Forest Hills, New York. Summary Statement JetBlue Airways, an American low-cost airline, headquartered in Forest Hills, New York started flying out of John F. Kennedy Airport in February of 2000.JetBlue started by following Southwest’s approach of offering low-cost travel, setting themselves apart from their competitor’s through the amenities they offer like in-flight entertainment, flat-screen TV’s on each seat, live digital satellite radio for all passengers, one-way tickets and no weekend stay over requirements to receive their cheaper fares....   [tags: Business Case Study]

Powerful Essays
1139 words (3.3 pages)

Delta Case Analysis Essay

- Identify the important facts surrounding the case Delta does business globally in 503 cities in 94 countries and is the third largest airline in the United States. In 2003, Delta's daily needs included 7.3 million gallons of fuel, 109,000 meals and snacks, 151,000 bottles of water, 87,000 cans of soda, and 219,000 pounds of ice. Its daily operations also required large amounts of information relating to such areas as flight schedules, gate information, baggage handling, customer service, and tower operation....   [tags: Business Case Study]

Free Essays
1945 words (5.6 pages)

Essay about Herman Miller Case Study

- Case Six: Southwest Airlines Introduction Herman Miller has a deep-rooted history as a quality manufacturer of office furniture. The company has been recognized on Fortune’s “Most Admired Companies,” and “100 Best Companies to Word For” lists, as well as Fast Company’s “Most Innovative Companies” list (Shipper, Manz, Adams, & Manz, 2011). Due to the company’s innate ability to reinvent itself, Herman Miller has been able to stay relevant through the years despite the great depression and several recessions over the years (Shipper et al., 2011)....   [tags: Office Furniture, Environmental Stewardship]

Powerful Essays
1255 words (3.6 pages)

Behind The Southwest Airlines Culture Essay

- Southwest airlines began in 1967 as Air Southwest Co. Based in Dallas. They began serving three major cities in Texas, with only three Boeing 737 aircrafts. March 29th, 1971 Air Southwest Co. changed its name to Southwest Airlines Co. The company began service on June 18, 1971 from Love Field in Dallas to Houston and San Antonio. Founders Rollin King and Herb Kelleher were inspired by their location to create an airline that was focused on the people. The LUV airline prides itself with exceptional employees and “no frill” customer service....   [tags: Southwest Airlines Analysis]

Powerful Essays
2810 words (8 pages)