Case Analysis
USC Marshall School of Business
GSBA 520: Business Fundamentals for Non-Business Majors
Professor: Thomas. H. Olson
Master of Public Administration
Zhijun, Gao
Case Analysis-Southwest Airlines 1. Use the Star Model to describe the strategy, etc., of Southwest. Prepare a diagnosis of Southwest.
Southwest Airlines is an American airline based in Dallas, Texas, and it is the largest airline in the United States. Since the airline is originated from a small company, but it has won against many large and experienced competitors, so the incredible accomplishment achieved by the company has many reasons. Here we apply the Star Model to describe the reasons for Southwest Airlines’ success.
The Star Model is an analytical tool for the purpose of evaluating the performance of an organization; it depicts the key features of an organization: strategy, structure, rewards, processes, and people. Here we apply this model to the case of Southwest Airlines.
Strategy
In the Star Model, business strategy is the foundation element. It defines the kind of organizational performance that is needed, the types of organizational capabilities and competencies that are needed, and how the organization forms its competitive edge in the industry. The most important thing is that the strategy the company selected should be suitable with its resources and capabilities, thus shaping its edge. 1. Customer service and low price
In the Southwest Airlines’ case, since the company was relatively small and lack of capital, so it cannot compete with other large airlines through huge investment and technology. But King and his associates firmly believed that there is a need existed for improved air service between Houston, Dallas-Fort Worth, and San Antonio, and although Braniff and TI provided most of the air service between these markets, the degree of customer satisfaction of their service was very low, and Braniff was even commented as “the World’s Largest Unscheduled Airline”, the
GSBA 520: Business Fundamentals for Non-Business Majors
Professor: Thomas. H. Olson
Master of Public Administration
Zhijun, Gao
Case Analysis-Southwest Airlines 1. Use the Star Model to describe the strategy, etc., of Southwest. Prepare a diagnosis of Southwest.
Southwest Airlines is an American airline based in Dallas, Texas, and it is the largest airline in the United States. Since the airline is originated from a small company, but it has won against many large and experienced competitors, so the incredible accomplishment achieved by the company has many reasons. Here we apply the Star Model to describe the reasons for Southwest Airlines’ success.
The Star Model is an analytical tool for the purpose of evaluating the performance of an organization; it depicts the key features of an organization: strategy, structure, rewards, processes, and people. Here we apply this model to the case of Southwest Airlines.
Strategy
In the Star Model, business strategy is the foundation element. It defines the kind of organizational performance that is needed, the types of organizational capabilities and competencies that are needed, and how the organization forms its competitive edge in the industry. The most important thing is that the strategy the company selected should be suitable with its resources and capabilities, thus shaping its edge. 1. Customer service and low price
In the Southwest Airlines’ case, since the company was relatively small and lack of capital, so it cannot compete with other large airlines through huge investment and technology. But King and his associates firmly believed that there is a need existed for improved air service between Houston, Dallas-Fort Worth, and San Antonio, and although Braniff and TI provided most of the air service between these markets, the degree of customer satisfaction of their service was very low, and Braniff was even commented as “the World’s Largest Unscheduled Airline”, the
References: 1. “Achieving High Performance,” Edward Lawler, From the Ground Up, pp. 44-58. 2. “Corporations, Culture, and Commitment,” Charles O’Reilly, California Management Review, 31, 4, Summer 1989, 9-25. 3. Case: Johnson & Johnson (A) Philosophy & Culture 4. Case: Southwest Airlines (A), Christopher H. Lovelock, Harvard Business School, Case #9-575-060, February 1, 1985, pp. 1-26. 5. Case: Southwest Airlines (B), Christopher H. Lovelock, Harvard Business School, Case #9-575-060, February 1, 1985, pp. 1-7. -------------------------------------------- [ 1 ]. “Achieving High Performance,” Edward Lawler, From the Ground Up, pp. 44-58 [ 2 ]. “Achieving High Performance,” Edward Lawler, From the Ground Up, pp. 44-58 [ 3 ]. “Achieving High Performance,” Edward Lawler, From the Ground Up, pp. 44-58 [ 4 ]. “Corporations, Culture, and Commitment,” Charles O’Reilly, California Management Review, 31, 4, Summer 1989, 9-25.