Southwest Airlines : An Industry Leader Of Low Fare Air Transportation

975 Words Oct 20th, 2015 4 Pages
Southwest Airlines has proven itself as an industry leader in low-fare air transportation. Southwest serves 64 airports in multiple states across the country. Although the airline industry suffered a major blow from instances such as the Airline Deregulation Act and the multiple economic crisis’s, Southwest remains strong, while competitors of Southwest were suffering from problems such as bankruptcy. One of the major reasons Southwest was able to remain successful seemed to be due to their effective low-cost model that has been key to their business image. Another aspect that aided Southwest was the fact that their competitors were fully aware that they could not compete on a price level with Southwest. Southwest gave itself a reputation of being able to lead the industry and put their competition into bankruptcy. Southwest Airlines’ simple, yet effective business idea is the leading principle for their goals, organization, strategy, and their culture in whole. We see that Southwest’s success comes from much more than just their business model, we see that it is the way they dedicated themselves to implement their strategic alignment with their business model. Southwest successfully defined their business purpose, of which can easily be seen as low fare, short trips, fast turn over, with little room for one to replicate.
Overall, the airlines industry is not an attractive industry. After using the Five Forces Analysis and analyzing the five forces which are threat…
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