Southwest Airline is one of the most popular low cost American domestic airline that has been able to sustain its profitability through the turbulent phase when rest of the important airlines like Pan Am, Eastern etc. were struggling to survive. After deregulation in 1978, the…
In 1992, 10% of stocks of the company were owned by employees. It encourages union membership with management having good relationship with the labor union, thereby avoiding any loss of mandays through strike or lockups. The organizational culture of company thrives on excellent teamwork that promotes collective decision making and shared learning. Being part of profit sharing encourages concept of ‘big family’ significantly forges personal bond with the company that reflects in their committed work and improved productive outcome.
Continuous improvement and innovation in customer service is the hallmark of the airlines. The employees and staff are empowered to make decisions regarding the welfare of the customer on and off the flight. The company’s strategy was to increase the number of customer service agents so that the passengers could get improved personal service and emotional support and security at the time of crisis. Grant (2007) says that analysis and identification of the changing preferences of the customer are important ingredients to gain leverage against their rivals (Grant, 2007). Southwest has been focused in its customer service and makes continuous efforts to update its products line with that of the changing public requirements. Company’s stock ticker symbol is fittingly chosen as ‘LUV’! Indeed, the company has been innovative in its new plans and features to meet the challenges of time.
While the management follows stringent regulations and strict time schedules, it has, at the same time, empowered its workforce to make decisions based on informed choices. Southwest prefers destination to destination flights which is preferred by customers and therefore is more popular. Its low cost strategy has been successful because of its exemplary customer service, security features and specialized short haul flights. The high ...
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(Southwest Airlines Case Study Example | Topics and Well Written Essays - 500 Words - 1)
“Southwest Airlines Case Study Example | Topics and Well Written Essays - 500 Words - 1”, n.d. https://studentshare.net/miscellaneous/456970-southwest-airlines.
Southwest Airlines Introduction 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. The business was established to offer reliable, affordable, and convenient air transport services to customers, mainly business people who needed to travel between Houston, San Antonio and Dallas.
Financial Performance 7 3.1 Liquidity ratio 9 3.2 Solvency Ratio 10 3.3 Profitability Ratio 11 3.4 Efficiency ratio 13 3.5 Comparison with Competitors 14 4. Key Performance Indicators 15 Advancement of security and culture of Southwest 15 Value the employees 16 Make a place in the minds and hearts of the customers 16 Use Resources Sensibly 16 5.
In the company's website, one would clearly trace the history of the said company and how it succeeded. There, it states that "The airline began service June 18, 1971, with flights to Houston, Dallas, and San Antonio. Southwest topped the monthly domestic originating passenger rankings for the first time in May 2003.
'First Break all the rules' is a remarkable book written by Marcus Buckingham and Curt Coffman. It is more than a book, in that it is an extensive research of eighty thousand manager's successful managers of various businesses large and small, with a resounding conclusion, that very often the best do things their own way even if it is different or against convention and that actually is part of what makes them stand apart.
The paper also attempts to present an in-depth analysis of the strategic alternatives available to the airline and make a suitable recommendation for improving the operational performance of the company. The study about Southwest Airlines becomes interesting in view of the fact that the airline has been profitable for a continuous period of 36 years.
Southwest currently operates only Boeing 737. Today, the company's operating fleet was composed of 537 Boeing 737 aircraft, each having 189 seats, with an average age of approximately 10.5 years. The average aircraft trip length is 639 miles with an average duration of one hour and 54 minutes.
In June 2011 it was announced the biggest airline in the U.S. on the basis of the number of domestic passengers that it serves.
Since the institution of the Airline deregulation Act, of 1978, Southwest airline has experienced low profits for a number of years. This is
The airlines charged then $20 for one-way trip in comparison to $27 charged by other carriers. The SA was known for its famous tag line: "Now there’s Somebody Else up There Who Loves You" (394). Perhaps, that was the reason that routes between Dallas, Houston and San
3 Pages(750 words)Case Study
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