We are committed to provide our Employees a stable work environment with equal opportunity for learning and personal growth. Creativity and innovation are encouraged for improving the effectiveness of Southwest Airlines. Above all,
Introduction While flying home to Texas last summer with Southwest Airlines, I had the most fun and unique experience with an airline that I could ever remember. It all started out quite oddly enough in the lobby just before takeoff. As I was checking in at the ticket counter, the representative asked me if I wanted to play a game that could get me free round trip tickets. "Sure, who wouldn't," I exclaimed. As she gave me my boarding pass she said, "Great, how many holes do you have in your socks?" Initially caught off guard, I responded, "Excuse me!" "The free tickets are being given to the customer who has the most holes in their socks," she explained with a perky smile.
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
The United States carries over one third of the globe’s total traffic, where Over 1.5 billion passengers fly annually. Over the past 20 years, air travel has grown at an average of about 5% per year, the reason for annual change is usually differences in economic growth, and of course other environmental factors, such as the current war. As a rule, the annual growth in air travel has been about twice the annual growth in GDP. Deregulation, liberalization, and competition have essentially altered the management strategies and practices of airlines. Productivity improvements and cost management have been two of the greatest concerns for US airlines for the past twenty years. As a whole, the airline industry must continue to improve their specialization in terms of fleet utilization, pricing and revenue management, and schedule optimization.
Southwest Airlines is one of the most successful airlines in the United States. There has never been layoffs or strikes in the history of the company, although there were several times when layoffs could have been justified, including the months following the September 11, 2001 terrorist attacks. However, Southwest's Mission statement says “Above all, Employees will be provided the same concern, respect, and caring attitude within the organization that they are expected to share externally with every Southwest Customer.” (Southwest, 1988). The Airline has always believed that their corporate culture is one of the keys to their success. The culture recognizes that employees have emotional intelligence and that their
Air travel has its ups and down, as does basically any type of travel. However, Southwest Airlines has always been my favorite airline to fly. As a young single who loved traveling, I found their fares and schedules to be the most convenient for my taste. I always appreciated the staff’s sense of humor, and it really never bothered me where I sat, so I didn’t mind the “A, B, C” boarding groups as opposed to assigned seats: I actually appreciated the freedom of choice. It wasn’t until after a couple of marketing classes that I realized the things I preferred about Southwest were intentional marketing strategies that the company used to differentiate
Southwest Airlines (SWA) begins in June 18, 1971, when SWA first operated a first airline consul between Houston, Dallas and San Antonio. Rollin King and Herb Kelleher are the founders of the company. The end of 1971 SWA immediately began to expand.
How has SWA (a) responded to the “Shuttle By United” initiative (half page 5 points); and (b) what assessments can be made about SWA’s market and financial position on competitive routes based on 1994 4th quarter results (half page 5 points)?
At the onset of the airline industry in the United States, major network airlines were the sole providers of air travel. This multifaceted industry was a difficult industry to break into as a consequence of “sophisticated customer segmentation, hub-and spoke models and costly information systems for reservations, fare wars and intense competition” (Thompson 2008). Shrinkage in airline ticket prices augmented the demand for airline travel. Many markets were simply deserted or over-looked by major network airlines; this is a region a fresh “second tier of service providers” could enter into. This endeavor proved to provide a consumer savings of billions per year. Thus in June of 1971, after a tumultuous battle with other Texas-based
Southwest Airlines' strong organizational culture is reflected in its mission statement "dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit" (Southwest, 2012). Southwest serves not only as a prime example of a company that excels in customer service and profitability, but as one that has utilized employee development as a means to meet these ends. Southwest makes a strong commitment to foster ongoing relationships with human resources. They demand that their employees are responsible members, however
Values and beliefs of a company can attract investors to a company or deter investors from a company. Fortunately, the SWA has attractive values and beliefs. According to SWA’s home page, the Southwest Airlines mission is “dedication to the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit”.
Southwest has an average turnaround time of 25 minutes. This is quite lower than the industry average. For this success, the factors that were responsible were; an absence of meals on all Southwest flights, a limited amount of checked luggage on Southwest’s typically 60- to 90- minutes flights, a near-uniform configuration for all of its 737 aircraft, a team-oriented approach to ground services with team measures for turning around planes and freedom to do whatever necessary to get a plane pushed off on time with a high speed boarding process.
When on vacation, the first people you deal with are the airline companies, yes this is the dreaded trip to the airport. Way to often people have their happy vacations ruined by inconsistent and unreliable customer service, making them late for flights because of long lines, slow service, and unreliable technology that is difficult to use. However, Southwest airlines is one company that is standing out above all others. Known for their outstanding customer service and “Bags Fly Free” campaign, Southwest has held their ground against rising prices in airline travel and continued to expand its reaches while at the same time attracting many satisfied customers. Southwest Airlines was founded on June 18, 1971 by Rollen King and Herb Kellener. The very same year, Southwest began its flights servicing Dallas, Houston, and San Antonio. Southwest quickly climbed the ranks within airline the industry and became the fifth largest US air carrier by 1998, carrying an average of 50 million passengers a year across the United States. From then on, Southwest soared above the rest of the mid-range air carriers, and continues to do so to this day. Southwest quickly became known for its innovation when it comes to customer service and satisfaction, and it is still well known today for its simple and convenient customer service. Southwest has also been deeply involved when it comes to their social responsibilities, taking action to be ecofriendly whenever, and wherever possible. (Avstop)
The goal of this paper is to explain the prominent success of Southwest Airline in the United States through a single case study analysis making use of the McKinsey’s 7-S framework. Developed in the early 1980s at the McKinsey & Company consulting firm by Tom Peters and Robert Waterman, this framework looks at 7 internal factors (Structure, Strategy, Systems, Style, Staff, Skills, Super-ordinate goals) which, according to its authors, need to be aligned for an organization to be successful. In this paper, we will analyse each of its internal elements through the case study “Southwest Airlines in 2008, Culture, Values, and Operating Practices”.
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.