Southwest Airlines 2002: An Industry Under Siege Case Study “Discussion Format” MGMT 5113 Team 7 Dag Yemenu Sachin Gupta Michelle May Shaun Evans November 22nd 2003 Problem Overview Southwest Airlines has employed unique operational strategies‚ incorporating industry revolutionizing methodologies‚ while developing and sustaining a strong corporate culture that has allowed Southwest Airlines to be profitable for a phenomenal 30 straight years and capture the Airline Industry
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Introduction: Southwest Airlines path towards earning the right to fly was a long and stressful process for everyone involved. However‚ the staff’s ability to overcome all odds truly began the formation of Southwest’s distinct character‚ which makes the company so successful today. Founders Rollin King and Herb Kelleher who founded the company in 1967‚ among others were attacked by Texas airlines such as Braniff‚ and Continental‚ claiming the market was already saturated. After three years of
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CSR practiced by Southwest Airlines To build a reputation as a leader in corporate social responsibility‚ companies should focus on strong governance practices‚ positive working conditions‚ and a commitment to supporting the needs of communities and the environment Southwest airlines has consistently been on top‚ in the American companies that are nominated as the best practitioners of CSR in the country. Southwest divides its social responsibility among three principal categories; Community outreach/volunteerism
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SouthWest Airlines: Balancing the Price-Value Equation. 1. Customers seek many benefits when they buy air travel tickets. Most of them look at all of the airline companies‚ and since every single airline tries to differentiate itself this can be hard. The common benefits customers seek are: - Low prices - comfortable place to sit - variety of amenities - attentive customer service SouthWest Airlines has been meeting the benefits customers want in some way. They are number 1 at low prices
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effectiveness of this structure for the organization." Southwest Airlines is part of an oligopoly. An oligopoly is defined as an instance where there are only a small number of producers in a market; due to the small numbers‚ if one company changes their prices of their goods or services‚ the others will do the same in order to keep it competitive. Running as an oligopoly can be both helpful and painful for the consumer. For instance‚ Southwest Airlines has set prices they have for certain flights to
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SOUTWEST AIRLINES ANALYSIS The U.S. airline industry has proven to be one of the least profitable in the entire world. It has been plagued by fierce competition and destructive price wars‚ extraordinary fixed costs‚ and heated labor relations. Despite these numerous challenges‚ Southwest Airlines has been able to stand out from the competition and has established itself as one of the only consistently profitable airlines‚ with a record of twenty-one straight profitable years and stock earnings
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After establishing a unique business model in the airline industry‚ Southwest has had its fair share of imitators. Yet none of these efforts at reproducing the success of Southwest have reached expectations. There are many reasons why imitators of Southwest have struggled so much but one of the biggest is the success of Southwest’s human resource management. Southwest is able to pay its employees less than the other major airlines yet get more production out of them. This is due to Southwest’s family
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Southwest Airlines Leadership at Southwest has grown the company. The leader has a strong personality and led the company to a great position. Herb Kelleher ’s business decisions and out of the ordinary and have had success beyond belief. Employee empowerment is needed to make any successful company. At Southwest Airlines‚ the empowerment has led the employees to lead themselves. They take pride in the actions. It allows them to get other involved and makes them more successful in the tasks
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Marcio Cesar dos Santos Southwest Airlines 1) CQ: What are the key motivational strategies used by Southwest? Investing in People: As argued by Ann Rodes‚ Southwest’s competitive advantage come from people‚ so they has invested time and money to build a cohesively team work‚ developing in each one a strong sense of esteem and self-actualization. “Recognizing that our people are the competitive advantage‚ we deliver the resources and services to prepare our people to be winners‚ to support
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History Southwest Airlines has been a model of admiration for the airline industry and businesses from around the world combined. Southwest Airlines is a rag to riches story that has had to fight for everything it has become. Before Southwest was able to take on its first passengers‚ they had to fight competitors in the court system for nearly three and a half years. In 1966‚ Fortune Magazine states‚ “A San Antonio lawyer‚ Herb Kelleher‚ founded Southwest with one of his clients (now a Board member)
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