Southwest Airlines - Case Study Example

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Southwest Airlines

The company battled in court against its rivals in Texas to establish for almost four years. In 1971, Lamar Muse joined the company as the CEO and led the company to an attractive IPO (Thompson & Gamble, 2011). Together with funds from private investors, and the IPO, the company managed to raise lose to seven million USD, funds that were used to purchase aircraft, equipment, and start-up capital. The company hired several relented senior staff most of who were veteran executives from other airlines. The company’s first flight went through successfully. As of mid 2001, the company had a fleet of about 350 planes plying across 58 airports in the U.S., and boasted of enjoying a turnover of about 5.5 billion USD annually (Thompson & Gamble, 2011, p.281). The company used different strategies to grow and in 2010, the company emerged the share leader of US domestic air travel (1). The company transported more passengers to various destinations in the United States than any other airline in 2010. Furthermore, the company boasted of offering the most reliable schedule and made profits consistently over the years unlike many of its counterparts. Company Strategy The Southwest Airlines has applied several strategies to see its success in the competitive market environment. ...Show more

Summary

The Southwest Airlines was established in 1966, a brainchild of Rollin King, an entrepreneur from San Antonio (Thompson & Gamble, 2011). The business was formally incorporated in 1967 with Herb Kelleher as a shareholder. …
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