Executive Summary Southwest Airlines has been a strong growth company over the last 35 years. Using its low-cost‚ passenger friendly‚ point-to-point operational strategy‚ Southwest has been able to sustain considerable growth year after year and remain profitable for 33 straight years. While Southwest has gained market share in recent years‚ legacy carriers have struggled due to depressed market conditions. The entire airline industry has endured expensive labor contracts‚ soaring energy costs and
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Porter’s five forces framework 1. The threat of new entrants. In terms of economies of scale‚ Southwest fleet grew to 537 Boeing 737 aircraft providing service to 64 cities in 32 states throughout the United States‚ with 397 city pairs being served nonstop‚ by the end of 2008‚ thus has reached sufficient economies of scale. And Southwest Airline gains its cost advantage through the implementation of “low-cost strategy”. It not only flew planes point-to-point—short-haul flights bypassing the
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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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Introduction Southwest Airlines is a company that aims at having happy management‚ employees and customers. Unlike some companies‚ Southwest welcomes the idea of their employees being members of a labor union‚ agreeing that they need someone to speak for them in an effective way. Sure there are still some issues and differences that need to be worked out but that is what the union is there for. Review/Analysis of the Case As with any relationship‚ there is going to be goals and issues that the
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Case #20 – Southwest Airlines Company History 1966 Rollin King approached Herb Kelleher’s law office with plan to start low-cost/lowfare airline Ran into legal problems‚ rival airlines in Texas did everything they could to block new airline Herb Kelleher was determined to start up airline 1971 – Lamar Muse Southwest CEO‚ background in industry to get it up and starting Raised $7 million in capital and private investors to purchase planes and equipment Flights started between Dallas
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Leadership of Southwest Airlines Southwest Airlines is often a modeled by other companies for its organizational structure. Organizations that have an effective management team are successful in developing a strong organizational culture‚ utilizing managerial controls‚ and leveraging diversity. Effective management teams are developed by cultivating leadership skills in those that supervise the company’s associates. Organizations want managers that can motivate their associates to achieve the
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Analysis of Southwest Airlines Module: Business Management Vanessa Eelma Alyssa Julianna Farkas Thomas Schillinger Peter Lukacs Attila Radvanszki Adam Radvanszki 29th November‚ 2010 Word Count : XXXX Contents 1. Introduction 3 2. Literature Review 4 2.1 General Introduction of Theories Used 4 2.2 SWOT Analysis 4 2.3 External Factors 4 2.4 Organizational Structures 4 2.5 Hofstede’s Theory 5 2.6 Cultural Elements 5 2.7 Motivation 5 3 Analysis of Southwest
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Case 3-1: Southwest Airlines Corporation What is Southwest’s strategy? What is the bases on which Southwest builds its competitive advantage? Cost cutting SWAC uses a low-cost strategy. They had the lowest operating-cost structure in the domestic airline industry. Employee satisfaction Together with this strategy‚ they want to achieve customer satisfaction by employee satisfaction. They are famous for their customer and employee relationship. SWAC has been recognized by multiple organizations
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Southwest Airlines has been known for is inexpensive flights and upbeat‚ jokester employees since 1971. In 1980‚ Southwest adopted its mission statement as‚ “A dedication of customer service delivered with ‘a sense of warmth‚ friendliness‚ individual price and company spirit”. (Anonymous‚ 2005‚ p. 16). In 1997‚ Southwest Airlines celebrated its 25th anniversary. “The celebration centered around ten philosophical principles‚ such as ‘under promise but over deliver’ and ‘take competition seriously
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Southwest Airlines SWOT & PEST Analyses Xavier Quarterman 10/9/2012 Southwest Airlines Southwest Airlines is an air travel company that was started in 1971 by two men‚ Rollin King and Herb Kelleher (Russell 2005). Their goal was to combine airline travel with low cost and a sense of fun‚ today that goal has grown into one of the world’s richest and most profitable airlines today. But as with any business it is necessary to formulate strategies that can help the company stay on track of achieving
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