Discuss the corporate culture at Southwest Airlines and how it leverages its culture to achieve a competitive advantage. The corporate culture at Southwest Airlines can be defined within three areas including‚ core value‚ management style‚ and compensation. Southwest Airlines organization structure incorporated several areas but I was impressed with these three the most. Southwest Airlines had two core values‚ which emphasized on LUV and fun. Not only was LUV the company’s signature symbol
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Corporate culture is defined as: "the moral‚ social‚ and behavioral norms of an organization based on the beliefs‚ attitudes‚ and priorities of its members." Every organization has its own unique culture or value set; however‚ most organizations do not consciously try to create a certain culture. The culture of the organization is typically created unconsciously‚ based on the values of the top management or the founders of an organization. Southwest Airlines expends a lot of energy in maintaining
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Corporate Strategy Southwest Airlines faced many barriers to entry from the fierce competition of other airlines in the industry. Though competition was fierce‚ Southwest Airlines managed to succeed by doing things differently. Their mission was to provide affordable air travel to those who would not normally fly. Contradictory to the rest of the airline industry‚ Southwest maintained a profit while keeping its fares low. Southwest was unique to the industry in two ways. They focused on the short
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The domestic US airline industry has been intensely competitive since it was deregulated in 1978. In a regulated environment‚ most of the cost increases were passed along to consumers under a fixed rate-of-return based pricing scheme. This allowed labor unions to acquire a lot of power and workers at the major incumbent carriers were overpaid. After deregulation‚ the incumbent carriers felt the most pain‚ and the floodgates had opened for newer more nimble carriers with lower cost structures
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Case Study: Distribution Strategy Distribution strategies exist in three forms: exclusive distribution‚ selective distribution‚ and intensive distribution. Kotler and Keller (2009) define each of the distribution strategies as: exclusive distribution limits the number of intermediaries used; selective distribution depends on a limited number of intermediaries; and intensive distribution works with as many outlets as feasible. The distribution strategy of the airlines industry was not a part of
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Background: Southwest Airlines is the largest airline measured by number of passengers carried each year within the United States. It is also known as a ‘discount airline’ compared with its large rivals in the industry. Rollin King and Herb Kelleher founded Southwest Airlines on June 18‚ 1971. Its first flights were from Love Field in Dallas to Houston and San Antonio‚ short hops with no-frills service and a simple fare structure. The airline began with one simple strategy: “If you get your passengers
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Business Strategy – BAD 4013 – SUMMER 1999 Case Study Southwest Airlines I. Strategic Profile and Case Analysis Purpose 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. Twenty-seven years ago‚ Rolling King‚ owner of floundering commuter airline‚ and Herb Kelleher‚ King’s lawyer‚ got together and decided to start a different kind of airline that would provide a short-haul
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Strategy and Policy Case 2. Southwest Airlines. I- Strategic Profile and Case Analysis Purpose Southwest airlines were founded in 1971 by King and Herb Kellerher. They started with a low cost strategy in a risky market where profitability depends a lot on fuel prices and external factors‚ such as the willingness of consumers to pay ticket prices. They started growing a lot with various strategies that permitted them beat a lot of their competitors‚ but in order to stay in the market they
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Distribution Strategy WS5A4 Southwest Airlines - Case Study Operating under an intensely competitive environment‚ Southwest Airlines carefully projects its image so customers can differentiate its product from its competitors. Southwest positions itself in all its marketing communications as the only low-fare‚ short-haul‚ high-frequency‚ point-to-point carrier in America that is fun to fly (Cheng‚ 2010). Its low-priced fares are a brand equity which it "owns" in the mathematical sense of being the
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MGMT 3110 L1 Case Report: Southwest Airlines What is SWA’s competitive strategy? What does it take to execute the competitive strategy? The SWA has adopted ‘Cost Leadership’ as its competitive advantage. And it has achieved low cost through numerous ways. To commence with‚ the Southwest workforce routinely turn around an aircraft in only 15 minutes and its gates are manned by a single agent and have a ground crew of six or fewer‚ which are much lower than other airlines. In other words‚ the SWA
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