Southwest Airlines Case Study 1. Company Overview Southwest airlines began in 1967 as a low-cost‚ low-fare‚ customer-friendly air service shuttling passengers between San Antonio‚ Dallas and Houston‚ Texas. Founded by Rollin King and Herb Kelleher‚ Southwest moved from a small commuter transport of 18 round trip flights within Texas to a bustling market share leader providing more domestic flights than any other airline within the industry. Within two years of its first flight the airline
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Porter ’s five forces is a framework for the industry analysis and business strategy development developed by Michael E. Porter . It draws upon Industrial Organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Three of Porter ’s five forces refer to competition from external sources. The remainders are internal threats. It is useful to use Porter ’s five forces in conjunction with SWOT analysis (Strengths‚ Weaknesses
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SOUTHWEST AIRLINES (B): USING HUMAN RESOURCES FOR COMPETITIVE ADVANTAGE Marielos Aldi‚ director of human resources for Motorola in Central America‚ was talking to her case study group about tomorrow’s case‚ Southwest Airlines (AJ. "It simply isn’t possible. The case can’t be right. No company can be the way this case describes!" Bob Wells‚ another member of the group and the executive vice president in charge of human resources at Youna & Rubicam‚ the sixth largest advertising agency in the
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1. 5(+1) Porter‘s forces. | |The threat of substitutes | | |Food retail industry at first seems easy to substitute‚ but in truth the large markets are the ones who state the prices in the market‚ | | |thus for such large chains like Tesco the threat of substitutes is low as due to high demand it manages to offer high quality products at | | |low costs. Moreover
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Southwest Airlines Southwest Airline started out in 1967 and has been different even from its inception. The airline flew to three cities at first and allured customers with flights that departed and arrived on time at the lowest rate possible. This was important to business people that needed to get to and from Dallas‚ Houston‚ and San Antonio on business (History‚ 2013). It was also important to make sure people had a good time while traveling and dedicated their business to a high quality
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Southwest Airlines 2011 Diagnosis: Southwest airlines began first flight in 1971. They experienced finance loss only in the first year. Southwest’s company vision is to keep a low fare with better customer service. According to different surveys‚ Southwest airline has the highest margin in all years except 2007 and passenger yield. Southwest has lowest average revenue passenger miles per passenger‚ load factors‚ unit costs per available seat per mile‚ and net debt. In order to maintain their
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Michael Porters Strategy Michael Porter is the University Professor (the highest honor in Harvard University) in Harvard Business School. He is acknowledged as the father of competitive strategy. He has two main theoretical perspectives; one is “the five forces model of competition”‚ and the other one is just the “three competition strategies” (Michael Porters Strategy). The three competition strategies are cost leadership strategy‚ differentiation strategy and segmentation strategy. These strategies
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EXCHANGE ACT OF 1934 For the fiscal year ended December 31‚ 2013 or ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission File No. 1-7259 Southwest Airlines Co. (Exact name of registrant as specified in its charter) TEXAS 74-1563240 (State or other jurisdiction of (IRS Employer incorporation or organization) Identification No.) P.O. Box 36611 Dallas‚ Texas 75235-1611 (Address of principal
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http://www.southwest.com Employees: 34‚901 Employee growth: 0.5% Southwest Airlines will fly any plane‚ as long as it’s a Boeing 737‚ and let passengers sit anywhere they like‚ as long as they get there first. Sticking with what has worked‚ Southwest has expanded its low-cost‚ no-frills‚ no-reserved-seats approach to air travel throughout the US to serve almost 70 cities in some 37 states. Now among the leading US airlines‚ Southwest still stands as an inspiration for scrappy low-fare upstarts the
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BASIC STRATEGY: In order to make up for increasing expenses Southwest needs to expand. My recommended strategy for Southwest to pursue‚ is to merge with Air-Tran and expand into areas where Air-Tran has a heavy presence and Southwest has none. With Southwest having a weak presence in the southeastern U.S.‚ a key area to expand would be Atlanta’s Hartsfield-Jackson International‚ which is the busiest airport in the U.S. There is obviously a need for the low air-fare company at this site. Southwest’s
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