Case Study Southwest Airlines 2011

1207 Words5 Pages
Case Study – Southwest Airlines 2011
Dawn Baumann

Advanced Marketing
Professor Nicole Dillett
September 29, 2014

As I develop in mind, body, and spirit, I pledge on my honor that I have not given, received, witnessed nor have knowledge of unauthorized aid on this or any paper.

Dawn Baumann

Background Summary:

Southwest airlines was founded in Texas in 1971 as a small, regional intra-state carrier. They chose to service the Golden Triangle of Houston, Dallas, and San Antonio. By staying within Texan borders, they could avoid federal regulations. They used Boeing 747 planes in their fleet. Since their inception, they have been striving to become the leading low-cost carrier in the
…show more content…
They have been a multiple Triple Crown Winner in U.OT rankings. They have enjoyed thirty-one consecutive profitable years of business. They are dedicated to offering the highest quality of customer service delivered with a sense of warmth, friendliness and individual price. They have consistently high ratings with consumers. Southwest spends more money on employee training than anyone else in the industry. They encourage their employees to interact with customers and to think outside the box. They have a family-friendly atmosphere that leads to high customer and employee morale and low employee turnover. The shorter routes help Southwest Airlines maintain better R.O.I. Their planes are in the air 12 hours per day vs. industry average of 8 hours per day.
Weaknesses: Southwest has been seeing a turnover of some of their key personnel, which is making it difficult to maintain the corporate culture. There are labor challenges caused by increased tensions between labor unions and management. Their current air traffic control system is based on World War II technology using analog transmissions that cannot penetrate mountains, are impacted by bad weather, and cannot reach across oceans. Their planes are now outdated. They have a huge problem with mishandling bags – over 400,000 of them in 2011. This cost them over $53 million. The result is dissatisfied customers. Slower turnaround
Get Access