CASE STUDY 2
SOUTHWEST AIRLINE IN 2010: CULTURE, VALUES AND OPERATING PRACTICES
CASE QUESTIONS:
1. Is there anything that you find particularly impressive about Southwest Airlines?
Transported more passengers from U.S airports to U.S destinations than any other airline
Consistently profitable- had reported a profit every year since 1972
Became a major competitive force in domestic segment
2. What grade would you give Southwest management for the job it has done in crafting the company’s strategy? What is it that you like or dislike about the strategy? Does Southwest have a winning strategy?
Southwest deserves an A for their strategy to keep their fairs at low cost and making themselves different with better customer services than their rivals to become a profitable airline. Their continuous capability of creating a profit year after year despite a downturn in the economy showed their ability to succeed by their winning strategy. Due to their unique strategy of low operating costs, low fares, customer pleasing services and their promise to keep their costs the lowest across the industry is the most appealing part of their strategy. Their positive corporate culture is reflected through their customer service and prices.
3. What are the key policies, procedures, operating practices, and core values underlying Southwest’s efforts to implement and execute its low-cost/no frills strategy?
Southwest low-cost and no frills strategy makes travel more affordable. The fares are presented simply and easy to access on their website. The lowest fares were nonrefundable but could be applied to future travel on Southwest Airlines where their many other competitors charged customers between $100-175 dollars for flight changes. Biggest advantage that Southwest offers is the ‘Bags Fly Free’, which allowed for bags to fly free with no additional costs. They also initiated special far promotions when advance reservations were weak to fill up planes. This strategy combined
CASE QUESTIONS:
1. Is there anything that you find particularly impressive about Southwest Airlines?
Transported more passengers from U.S airports to U.S destinations than any other airline
Consistently profitable- had reported a profit every year since 1972
Became a major competitive force in domestic segment
2. What grade would you give Southwest management for the job it has done in crafting the company’s strategy? What is it that you like or dislike about the strategy? Does Southwest have a winning strategy?
Southwest deserves an A for their strategy to keep their fairs at low cost and making themselves different with better customer services than their rivals to become a profitable airline. Their continuous capability of creating a profit year after year despite a downturn in the economy showed their ability to succeed by their winning strategy. Due to their unique strategy of low operating costs, low fares, customer pleasing services and their promise to keep their costs the lowest across the industry is the most appealing part of their strategy. Their positive corporate culture is reflected through their customer service and prices.
3. What are the key policies, procedures, operating practices, and core values underlying Southwest’s efforts to implement and execute its low-cost/no frills strategy?
Southwest low-cost and no frills strategy makes travel more affordable. The fares are presented simply and easy to access on their website. The lowest fares were nonrefundable but could be applied to future travel on Southwest Airlines where their many other competitors charged customers between $100-175 dollars for flight changes. Biggest advantage that Southwest offers is the ‘Bags Fly Free’, which allowed for bags to fly free with no additional costs. They also initiated special far promotions when advance reservations were weak to fill up planes. This strategy combined