Case 3-1 : Southwest Airlines Corporation Ringkasan Kasus : Pada Januari 2005‚ hasil akhir tahun yang dihasilkan oleh Southwest Airlines Corporation (Southwest) mencapai 32 tahun dengan profitabilitas berturut-turut. Southwest merupakan perusahaan yang bergerak dibisnis pelayanan transportasi udara yang didirikan di Texas pada 18 Juni 1971‚ dengan semakin berkembang usahanya‚ armada pesawat yang dimiliki juga semakin banyak dengan total pada tahun 2004 memiliki 417 pesawat Boeing 737 dan menyediakan
Premium
Illustrate the meaning of “Sustainable Competitive Advantage”. What was the main strategy adopted by Southwest Airlines that made it successful in the airline industry? Competitive advantage is a position of a company in a competitive landscape that allows the company earning return on investments higher than the cost of investments. Competitive advantage should be relevant‚ unique and sustainable. Therefore sustainable competitive advantage‚ it’s a long-term competitive advantage that a company
Premium Southwest Airlines Airline
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
Premium Southwest Airlines Airline
Southwest Airline Case ¨C Executive Summary Introduction in 1971‚ Herbert D. Kelleher with other few business partners started an Airline services. Up till 1991‚ Southwest served low-fair air transportation among 32 cities in 14 states with over 20 million customers annually in the United States. Although the industry suffered a major blow from the unfavorable economic conditions‚ the company was still holding strong; while other airline companies were in debt. The major success to their continued
Premium Southwest Airlines Airline Low-cost carrier
Summary: Southwest Airlines has been making changes over the past few years that helped them become the largest low-cost carrier in the United States. Most other airlines have been struggling to make it through this economy‚ but Southwest has found a way to thrive. The airline has dropped their prices and eliminated fees for extras that have allowed them to fill up most flights. One cost they continue to struggle with is offsetting the increasing fuel prices. This has caused some airlines to merge
Premium Southwest Airlines Airline Low-cost carrier
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
Premium Southwest Airlines Airline Low-cost carrier
Mission Statement: 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. (source: Southwest.com website) Vision statement: Our vision is to expand our locations both domestic and overseas by being the largest and most profitable airline company to achieve both short and long-haul carriers efficiently and with low cost. Also to be an airline carrier that has the most productive
Premium Airline Southwest Airlines
Southwest Airlines’ Strategic Management Chungsun Park Nonhanhla Nene Mohit Khatri Junbai Ma HOS 407 – Strategic Management Dr. Richard L. Valente 12/12/2011 Table of Contents Executive Summary 3 Mission‚ Vision‚ Values‚ and Goals 4 Organizational Structure 5 Management Process and Roles 6 Porter’s Five Forces 6 Threat of New Entrants 6 Threat of Substitute Products 8 Bargaining Power of Suppliers 9 Bargaining Power of Buyers 10 Rivalry 11 The Roots of Competitive
Premium Southwest Airlines Airline Low-cost carrier
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
Premium Southwest Airlines Airline Aircraft
Southwest Airlines corporate philosophy can be credited to one of the founders Herb Kelleher. It is an airline company with a unique culture “goofiness”‚ which keeps the morale of its employees high (Smith‚ 2004)‚ and is a company that welcomes fun‚ dedication‚ and effort. Southwest believes that a happy employee will create a happy customer‚ and will create loyal customers. Mr. Kelleher effectively implemented its style‚ culture and emphasis on quality in the daily actives at Southwest (Smith
Premium Southwest Airlines Airline