Southwest Airlines Business Strategy

3780 Words Feb 6th, 2011 16 Pages
Business Strategy – BAD 4013 – SUMMER 1999 Case Study Southwest Airlines I. Strategic Profile and Case Analysis Purpose The mission of Southwest Airlines is dedication to the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride, and company spirit. Twenty-seven years ago, Rolling King, owner of floundering commuter airline, and Herb Kelleher, King’s lawyer, got together and decided to start a different kind of airline that would provide a short-haul, low-fair, high-frequency, point-to-point service in the United States. The company began service on June 18, 1971 with flights between Dallas, Houston, and San Antonio (“The Golden Triangle” as Herb called it). Southwest Airlines is the fourth …show more content…
Personal consumption expenditure also increased in 1998 compared to 1997. Because the aging population will decrease the labor force growth, this will reduce the economy’s potential to produce. This will increase the cost of labor for the airline industry. Households in the Northeast and West spent more than the Midwest and South in 1995. Because regional spending patterns are partly determined by climate, spending by region is not likely to change in the years ahead. 4. Political/Legal Environment With the deregulation of the airline industry came the advent of hypercompetition and also a decrease in wages for airline industry employees. Censuses show a 10% decline in the relative earning of airline workers after deregulation. Excess government intervention will be the only thing that will inhibit the rapid growth effects of deregulation both domestically and internationally. 5. Global Environment Growth in international travel will be determined on the successful application of Open Ski legislation and other agreements with foreign governments and carriers. On June 16, 1999, the United States and the United Kingdom were on the verge of a break through in their negotiations on an open-skies agreement between the two countries. This would create an open and competitive environment in one of the world’s largest international aviation market. The European Community has been working on its own version of Open Skies deregulation. European regulation is a national
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