Southwest Airlines has been making changes over the past few years that helped them become the largest low-cost carrier in the United States. Most other airlines have been struggling to make it through this economy, but Southwest has found a way to thrive. The airline has dropped their prices and eliminated fees for extras that have allowed them to fill up most flights. One cost they continue to struggle with is offsetting the increasing fuel prices. This has caused some airlines to merge or sell the company to competitors.
Today Southwest Airlines is the biggest domestic passenger carrier in the United States of America operating more than 3,400 flights a day. They provide service to 93 cities and 5 countries internationally. Last year Southwest Airlines, “Enplaned approximately 136 million Customers (About Southwest). The airline has grown since it’s first years flying out of Love Field in Dallas, Texas. In the beginning, Southwest provided flight service to only three Texas cities in 1971. One of Southwest Airlines’ early advertisements was a double page ad that ran in Dallas newspapers during May announcing their first flight on June 18, 1971 (Lusk). This advertisement introducing a new airline would soon revolutionize the airline industry and create the new category, of low cost carrier, to the world.
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.
If Southwest decided that they needed to increase their revenue they would have to start by raising the prices of their tickets. The need for increased revenue would need to be passed on to the consumers’. When a ticket price is higher with one airline than the other, the customer
Southwest Airlines is an Equal Opportunity Employer, therefore, has diversity in their employees from all over the world. They have employees from different cultures and experiences. Southwest Airlines invites military personell, active and retired veterans to apply. They also offer positions to qualified disabled individuals and disabled veterans. According to Forbes, “The icing on the cake is an elaborate recognition program for all employees who are recognized by customers. They are lauded in newsletter features, on the intranet, by the CEO in videos that are played at staff meetings, and dinners honoring them. Voluntary turnover is only two percent, and many of Southwest’s original employees are still there. The company receives
Southwest's competitive advantage in providing low cost is of the primary reasons which their competitors couldn’t match. The airline has the lowest costs on a per mile basis among all the major airlines as they used single aircraft type and the highly efficient, high-frequency ad point-to-point route scheme. Due to this commoditization of the industry, passenger profiles have changed with business and first class seat demand in great decline. This correlates perfectly with Southwest's position of no assigned seats or class designations. Competing companies have been forced to introduce low fare options in attempts to regain lost market share from low priced air carriers. Because Southwest's strategy has always been low cost, and standardized travel, they have not had to change strategy. This has saved them what could amount to millions on restructuring costs. Also, some of the competitors tried to increase no of flights which resulted in operational ineffectiveness
Southwest Airlines possesses a very flexible and dynamic organizational structure that allows it to react rapidly, adapt swiftly and view environmental changes as opportunities rather than threats. After September 11, many companies went bankrupt due to this there was an unmet demand of flights. Southwest has taken the need of people to fly faster from one place to another and used it to their advantage by offering safest, fastest and cheapest way. The improved website can help attract more customers. As, it uses only one kind of aircraft its engineers can model an alternative fuel to lower fuel cost and conserve the environment. As proven
Introduction Many organizations implement a strategic plan to grow their company or take a step towards success. The result of that plan is either efficacious or a failure. Southwest Airlines Corporation is no exception to the rule. Their success is based on a few key components that have kept them as a profitable company, with happy employees and customers.
Southwest’s expertise was in providing consistent fun, enjoyable, unique customer service. They achieved this by making jokes, playing games in the terminals, and offering free alcoholic beverages. The airline put employees first, making them feel like valuable assets. In turn, they did their job energetically, treated customers with respect, and make flying on Southwest airlines a unique experience. People enjoyed the light atmosphere; it would help to reduce the anxiety of nervous flyers. Southwest was known for its stewardess’s in knee high boots and colorful uniforms. Along side the employees, Southwest’s distinctive competence was it’s shorter and cheaper travel time, which beat out all major competitors. Southwest had the lowest cost/low-price/no-frills strategy that offered a single class of service at the lowest price, making air travel more affordable. Now, they captured more of the market that otherwise would not be targeted. Creating millions of new customers that would eventually turn into loyal customers. Southwest was the first airline to introduce ticketless travel. Customers were able to order tickets online and simply use their drivers license at the airport to confirm their reservation. This innovative technology led to no lines at the ticket counter and more on time flights. In addition to the time cutting strategies, Southwest’s whole operating system was even the fastest. They used a point-to-point system
It has maintained the strategy and operating style of flying to airports that are close to metropolitan areas and that are underutilized.
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.
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.
This proposal addresses the needed steps to be taken in order for Southwest Airlines to see continued growth in the airline industry. Southwest Airlines has been able to remain one of the most profitable airlines in the industry for an extended period of time. Even with the hindrance of the 2001 terrorist attacks involving airplanes and the U.S recession of 2008, Southwest has continued to see strong revenue growth. Meanwhile, other companies were experiencing major losses and in some cases folding. Southwest Airlines has capitalized on the company’s strength of being the top low cost
“Southwest is one of the most admired companies in the country, respected in an industry that's better known for delayed flights and bad customer service than a great corporate culture.” (Business Insider) Southwest Airlines is known by many to have a long history or service in the airline industry. In many ways its rise to success is nothing less than astonishing. The company has been innovative in both its methods of marketing and its ability to manage its workforce effectively. Many consider Southwest a pioneer in the forms of creativity and innovation that is has used to strike the global economy. It’s also a well-considered company in the topic of Company Culture.
Southwest Airlines was created in the late 1960’s by a businessperson Rolling King, and law school graduate Herb Kelleher, who sought a faster travel time between Houston, Dallas, and San Antonio, Texas (Dess, et al., 2014, p. C137). After overcoming all of the antagonism and legal problems of many major airlines, Southwest was able to take its first flight in 1971 (Dess, et al., 2014, p.C137). With a dedication and will power to grow the company, King and Kelleher sought out ways to increase growth.