Southwest case analysis Essay

Good Essays
Southwest has made an organization out of providing low-fare, short haul routes between city pairs. It has concentrated specifically on offering low-fares on all of its flights by maintaining its no frills attitude and high frequency of flights. This has afforded Southwest Airlines with the lowest cost structure in the industry. Southwest has created a niche for itself by flying a network of flights between smaller U.S. cities that average just one hour apart. This has differentiated them from their competition and avoided many clashes with industry giants who concentrate more on coast-to-coast flights. Kelleher, who is the president, chairman and CEO of Southwest Airlines is the companies single biggest asset and driving force. Kelleher…show more content…
The first solution obviously would be to do nothing. This involves letting Kelleher retire and then searching for someone to take his place. This solution is reactive to its environment and the company will therefore be left at the mercy of how well the new person will be able to fill Kelleher’s shoes. Stakeholders may be happy about this solution as they have some say in Southwest’s new president. However if the new president is not able to meet the challenges ahead, then stakeholders may see this as a managerial mistake that was not preemptive enough. The benefit of this solution is the lack of expenses involved in formulating a strategy. However, the costs can be very high and can potentially mean the demise of the company.

The second solution would be to develop a management team that could potentially take over from Kelleher. This solution requires anticipating change and planning strategies to ease the transition. This solution does not guarantee anything, but at least the management team will be highly proficient and ready to take over the company and run it like Kelleher. Stakeholders should not be adversely affected as the management team will be run the company as if nothing ever changed. However, there may be some stakeholders who feel that the company needs fresh management and would have liked to have
Get Access