Airline and Southwest Airlines Company Essay

Southwest Airlines Co., established in 1971 by Rollin King and Herb Kelleher, began its operations with only three Boeing 737 aircrafts. It is headquartered in Dallas, Texas(Hawkins, Misra, & Tang, 2012). Southwest is well known as one of the largest low-cost carriers. With this strategy, the company has dramatically grown up and deeply rooted in the US airline industry. Now, Southwest Airlines Co. operates 633 aircrafts to 93 domestic cities and the highest number of passengers used Southwest Airlines to fly around U.S in Jan 2014 (Hawkins, Misra, & Tang, 2012). To accomplish more than 40th consecutive years of both profitability and competitiveness, Southwest Airlines Company is constantly trying to find the routes to differentiate itself from other domestic carriers (Hawkins, Misra, & Tang, 2012).

Southwest airline views their meaning as connecting people with what’s really important to them. They don’t just look at themselves as carriers or transporters of people, but as ones who help people get to people or places they care about in distant places. However, this may be perceived as a small distinction, still it may make a huge difference in how important an employee realizes and understands his/her job. Furthermore, the company has a strong, understandable intention linked emotionally with employees, it engages with.

People – One of the many things good about Southwest Airlines is that the kinds of people who are heroes of the organization are people who care and go out of their way to help the customers. They’re the ones who are celebrated and held up as shining examples. Additionally, high levels of satisfaction among employees can be attributed to Southwest employee policy. Happy employees can provide high quality service and bring more customers back. To reinforce the culture of hard work, high-energy, fun, local autonomy, and creativity, the company provided continuous education program to employees. If you can help someone out or brighten someone’s day, be it a co-worker or a passenger, you’re doing your job well.

Southwest Airlines Co. is an airline company that offers air transportation services within the United States and in international markets. The company operates within the airline industry that is highly regulated, technology intensive, labor intensive, and highly competitive (Southwest Airlines, 2017). Southwest Airlines operates a service business whereby the company offers a point to point air transport service to its passengers. Other than passenger transport, the company offers transportation services for pets and unaccompanied minors. The flights offered include short haul and long haul between various destinations within the United States and internationally. In 2016, the company’s operating revenues from international operations amounted to $383 million. A unique feature of the Southwest Airlines is its cost structure whereby the company focuses on cost discipline and uses one aircraft type to minimize costs.

Southwest Airlines was formed in 1967 by Rollin King and Herb Kelleher and started service in June of 1971. The airline is headquartered in Dallas, Texas and originally operated flights within the state of Texas. The company has since expanded and now operates flights from Dallas to almost all major cities in the United States and is considered the largest low-cost carrier in the country. “Southwest seeks to offer a travel product that is built around flights targeted to specific demographics and ticket pricing that is simplified so that passengers know

The human resources practices have created shareholder value by means of low turnover, high productivity and excellent job satisfaction level. Southwest has designed cross function work coordination whereby once the airline reaches a destination, every member of the flight and ground crew does everything necessary to get the next flight out on time. Remarkably the airline achieved a turnaround rate of 70% of their flights had an average fifteen minutes ground time in 1991. This lessens labour costs, significant productivity advantage in terms of equipment utilization, avoidance of long delays and makes flying with Southwest attractive to the travelers.

Southwest Airlines is a major US airline established in 1967 that services a multitude of cities in all 50 states and beyond. The company is known for its outstanding quality in providing services and it 's cost effective ticket prices to its many passengers throughout the nation. This airline is based in the southwestern United States, in the city of Dallas Texas, and due to the tremendous number of airplanes that it has and the timely service that it provides to its passengers, this airline services more US passengers than any other airline. This airline also has the largest fleet of planes of any economical or low-cost airline service in the world and employees more than 45,000.

By giving low-cost tickets prices southwest airlines attract to a broad base of salaries and the best cost provider strategy. They also separate themselves from their rivals by being different, an example of a broad differentiation strategy and they have no assigned seats, no baggage fee for the first bag.

Southwest Airlines (SWA) maintained a low-cost, low-price and no frills strategy. The small Texas carrier began as a concept, its business plan detailed on a cocktail napkin in 1971 and grew into the nation’s fourth largest airline. Known as an innovator with low operating costs, dominating smaller airports, with a humorous customer service, SWA saw its 40th profitable year in 2013. Like all companies, SWA underwent leadership changes in 2001, and said goodbye to the company’s founder in 2008. Unfortunately, the changes in leadership were not the only changes; the organization proceeded to alter their beliefs and activities.

At Southwest Airlines, the company’s business strategy has a positive effect on the training they provide to their employees. Southwest Airlines is a Texas based airline that started up in 1971 (Corporate Fact Sheet). Over the years the airline has been recognized for its outstanding customer service and its low airfare fees. Due to their excellent customer service, the company has been ranked number one in customer satisfaction in 2013 by the U.S Department of Transportation. In. 2015, Southwest airlines was recognized as one of the Best Places to Work in the Glassdoor Employees’ Choice Award. The reason that Southwest airlines is recognized for all these great things is because they obtain a good organizational control over the airline.

Social cultural forces are a double-edged sword for the company. Southwest used advertisements that targeted the cultural values and common buyer behavior of upper-middle class to upper-lower class consumers. Ads such as “bags fly free” and “Why do they hate your bags” resonated with consumers that believe airfare should be all-inclusive. The negative effect of this competitive advertising is reduced fee revenue compared to competitors like United Airlines. The demand of niche airlines will change as the demographics change, such as an increase in millennials flying versus baby boomers.

To formulate a strategy that will help Southwest Airlines maintain its competitive edge in the US airline industry.

Building the Brand: Southwest Airlines is well known as a Texas-based company that has a human side and a “down-home” attitude. Because of its large size, Southwest Airlines uses a variety of larger promotional methods, such as national advertisements and strong public relations to promote an image of a fun-LUVing brand. But, flight crews are the closest interactions that a customer has with the product, budget flights, which are a simple, undistinguished product. The quirky commercials and cheap flights appeal to a target market that is budget-conscious but still enjoys the fun side of life. The flight crews bridge the gap between the fun, unique commercials and the actual flight experience. By interacting with customers and joking around with passengers, they are able to grow customer allegiance in this market by acting in the same way that the brand has tried to portray itself.

The management style of Southwest airline is characterized by how greatly it takes care of its employees’ well-being. The management considers it as a mean to achieve higher customer satisfaction: “Keep employees happy, then they will keep customers happy”.

Southwest focused on creative marketing techniques to differentiate itself from other carriers. Service, convenience and price were represented in the marketing effort.