ALINEANDO LA ORGANIZACIÓN Case in Point Southwest Airlines: consistencia y coherencia a lo largo del tiempo Logo: www.southwest.com Southwest Airlines (SWA) es la primera aerolínea norteamericana: transporta millones de pasajeros anuales (102 millones‚ en 2008)‚ llega a 67 ciudades en 34 estados y opera más de 3.300 vuelos diarios.4 Tiene 35.000 empleados‚ 36 años consecutivos de beneficios y un récord de reconocimientos‚ que van desde estar entre las empresas más admiradas del mundo hasta
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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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Assignment Questions 1. What is Southwest’s competitive strategy? What are the sources of its success? How does it make money in this business? 2. What are the foundations of Southwest’s competitive advantage? Southwest Airlines’ successful and profitable business model has been driven by several strategies: high aircraft utilization; standard fleet; charismatic leadership; low fare carrier; excellent customer service practice; attractive frequent flier program; innovative and creative marketing
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Southwest Airlines: Using Human Resources for Competitive Advantage Executive Summary Southwest was founded in 1971 with a fleet of three Boeing 737 aircraft. Headquartered at Love Field in Dallas‚ the airline followed a strategy of low fares‚ few frills‚ and excellent customer service. Early on‚ the airline faced many political and regulatory challenges including the Wright Amendment‚ which prohibited the carrier from offering direct service into Love Field from any state other than Texas
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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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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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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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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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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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SOUTHWEST AIRLINES: THE ROLE OF HUMAN RESOURCES IN IMPLEMENTING BUSINESS STRATEGY AND HIRING PRACTICES By: Aric Hall Completed in Partial Fulfillment of the Requirements of OM 5210 – Human Resource Management Capella University Winter‚ 2007 Address: City‚ State‚ Zip: Phone: E-Mail: Instructor: P. O. Box 952 Bullard‚ TX 75757 (903) 894-8780 arichall@yahoo.com Phillip Randall‚ PhD Abstract This short paper is an overview of Southwest Airlines‚ its strategy‚ and what role Human Resources plays in
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