Business Strategy Of Southwest Airlines

1633 Words7 Pages
Southwest Airlines is currently facing a multitude of challenges to its historically successful business strategy that have created concerns about its ability to grow in the future. These challenges are both external and internal. External challenges include leaner competitors. External challenges include leaner competitors, higher gas prices, and limited growth opportunities. Internally the company face challenges such as reducing costs, keeping its unique culture intact, changes in the leadership of the company, and continually finding excellent talent. Southwest’s talent is selected very carefully, and at the same time is compensated very competitively, resulting in restively low labor cost for the company. The continued access to and availability of talents has a direct impact on Southwest’s operating strategy of being the cheapest and most efficient airline, which in turn depends on highly motivated employees who deliver outstanding customers services. The best competitors use training and development practices to improve the ability of the workforce to implement their business strategy. Improving the competence of the workforce is one way that training and development can create a competitive advantage, but it is not the only way. Training development activities also contribute to organizational success and less direct ways. Training development activities also are a means for employers to address employee’s needs. By offering training
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