Southwest Airlines: A Corporate Cultural Assessment University of X September 17‚ 2005 Southwest Airlines: A Corporate Cultural Assessment Southwest Airlines (Southwest) is a domestic US airline that provides short haul‚ high frequency‚ point-to-point‚ and low-fare service to and from 60 airports in 59 cities across 31 US states. From humble beginnings in 1971‚ this airline with only four passengers per flight‚ and airhostesses wearing hot pants and white go-go boots‚ has evolved into a leader
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Southwest Airlines Case Analysis 1. How does Southwest Airlines increase the customer’s willingness to buy (customer value)? Southwest airline creates customer value by providing an all around pleasant travel experience for its customers. Its ground and flight crew are extremely accommodating and flights are safe and on time. The fares are inexpensive compared to other hub and spoke airlines‚ which are attractive to business travelers during weak economies as well as to other travelers
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1. According to the authors of the case study‚ some of the market conditions of the U.S. airline industry in the early 1990s were triggered by the Airline Deregulation Act of 1978. In essence‚ “deregulation created greater competition and growth opportunities… laws restricting the airline industry loosened in the spirit of greater competition.” (Marketing Management‚ page 15). The impact of deregulation became evident in several areas: Removing regulatory price controls was followed by lower average
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Constraint Management at Southwest Airlines Introduction I think everyone here may has the experience that the plane can not take off on time. The long waiting time make everyone feel anxious. And at this time‚ this airline company’s customer satisfaction will become lower. Therefore‚ There are a lot of constraints in the process of operating the airline. How to manage these constraints and generate positive customer experiences are vitally important to the airline company. Southwest is a company that
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Southwest Airlines (A) Case Study 1. In June 1971‚ air transportation was not seen to be the primary transportation tool because of all the time wasted from checking in‚ expensive price‚ and air time. Therefore‚ SWA was not only competing with other airlines‚ but also on ground public transportations. SWA had to come up with a marketing strategy that will convince people that they are different from Braniff and other airlines that were seen to be inefficient and poor punctuality. SWA utilize
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Executive Summary As Southwest continues expanding‚ it is important that they maintain the low cost structure that has made them so successful historically. As larger and more congested destinations are added to Southwest’s routes‚ they must focus on customer service as the on-time arrivals and other metrics are certain to deteriorate. Additionally‚ in order to protect from volatile fuel prices‚ it would be prudent to expand the fuel-efficiency of the fleet by capitalizing on Boeing’s most
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What are the sources of Southwest Airlines’ competitive advantages? There were three keystones to Southwest Airlines’ competitive advantage. The first lied in its employees and how they were managed. Secondly‚ the firm sought to identify major threats and opportunities in their competitors‚ and assess how Southwest could improve and capitalize on markets where their competition failed. And the final significant success factor was the company’s cost structure. Former CEO‚ Herb Kelleher‚ was
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success of Southwest Airlines? 2. How significant is the 10 to 15 minutes turnaround time of Southwest’s aircraft in terms of savings in investment and utilization of its aircraft compared to competitors? 3. What challenges is Southwest facing in the future and how should they meet those challenges? 4. What should their business and operations strategy be for the future? 5. Has Gary Kelly‚ the new Southwest CEO since 2004‚ been able to maintain the profitability of Southwest Airlines while insuring
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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 its workplace culture. Southwest is the only major airline in the U.S. that has been profitable in each of the last five years. It also has a good reputation as an employer. Herb Kelleher‚ Southwest’s CEO‚ indicated how Southwest maintained its culture: "Well‚ first of all‚ it starts with hiring. We are zealous about hiring. We are looking
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Southwest Airlines Case Study 1. Southwest Airlines was successful for many reasons‚ including low airfare cost‚ “quick turns” ‚ and “spider web” system. But‚ probably most important was their Corporate Culture of putting their employees first and really taking care of them. Southwest believes by doing this makes their employees happy and in turn‚ they will take care of them….. and ultimately that means repeat business. 2. Southwest’s quick turns allowed for them to have twice the industry
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