Southwest Airlines Corporate Strategy Analysis

1465 Words Mar 15th, 2015 6 Pages
Southwest Airlines Corporate Strategy Southwest is ranked as the fourth largest airline in America concerning domestic traveler miles flown. The following factors accounts for Southwest Airlines success. Firstly, the organization is very serious about keeping their costs down. Secondly, Southwest employees have never gone on strike. Thirdly, Southwest dominates airline industry in on-time performance. Additionally, its unique culture maintains the morale of the employees elevated. Lastly, Southwest increased its stock price by 29 percent per annum in 2002. Southwest Airlines is glued together by its corporate culture. King and Kelleher founded it in 1971. Their major objective was to offer regular, cheap airline service in eventful markets of less than 500 miles. Southwest Airlines treats their employees with respect and rewards their productivity. The organization mainly focuses on their employees, and by doing so the employees will take care of their customers. The main objective of this corporation is to offer customers low budget flights. Although they do not offer meals, Southwest offers various snacks, and is more famous for offering a single bag of peanuts. Giving peanuts implies that their fares are very low such that customers can fly for peanuts (Cohan, 2002). Herb Kelleher was one of the primary founders of Southwest Airlines. Kelleher, whom recently retired and was superseded by Gary Kelly, was key in introducing corporate ideals that are dissimilar from other…
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