Business Plan For Southwest Airlines

3861 Words Aug 14th, 2015 16 Pages
Introduction 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. SWA went from activities and tasks that blended together, molding a strategic fit, which transpired into their competitive advantage against the competition to a company that focused on the bottom-line. Untouchable for decades, until the new top management changed SWA’s activities, which now threatens their strategy and competitive advantage. To find out what SWA is up against now, one assesses SWA’s activities, which explain how they worked toward the competitive advantage before moving on to what occurred to change the situation, making SWA’s competitive advantage fade into history unless the organization chooses to mend their ways or create a new strategy and competitive advantage. SWA built its competitive advantage through the strategic fit of various activities and its value chain, its positioning, and tradeoffs, enabling its…
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