The Success Of Southwest Airline Company Essay

Bargaining Power of Customers (high)- Customers has several options when it comes to flying. But the main attraction to customers are low prices and Southwest makes it known that they have some of the lowest airfares. The only way Southwest can take back the power is by offering direct flights to cities that other airliners do not offer. Besides the small occurrence of having a direct flight to a city that no other airline has, Southwest

Southwest Airlines is a major US airline established in 1967 that services a multitude of cities in all 50 states and beyond. The company is known for its outstanding quality in providing services and it 's cost effective ticket prices to its many passengers throughout the nation. This airline is based in the southwestern United States, in the city of Dallas Texas, and due to the tremendous number of airplanes that it has and the timely service that it provides to its passengers, this airline services more US passengers than any other airline. This airline also has the largest fleet of planes of any economical or low-cost airline service in the world and employees more than 45,000.

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’s management deserves a grade of A+, it is hard to see what Southwest could have done much better. The best examples being the company’s array of employee management practices and their strong commitment to identifying and implementing ways to keep its costs low. Southwest is a company with no glaring weaknesses or critical operating problems, but there are areas of concern. Southwest has lost some of its cost advantages in recent years, rival airlines have been slashing costs to survive, particularly in the areas of pilot salaries and employee salaries. Southwest has also been moving into airports with higher landing fees and more congestion.

On the basis of your preceding analysis review the ways in which Southwest Airlines manages the performance of its workforce.

Southwest Airlines is excellent in planning out their long-term goals. The above SWOT analysis proved that the company is successfully carrying out the cost leadership strategy to manipulate their competitors and boost up their company. Their mission in providing Low Fare cost is one of the best strategy that they can have to increase their market share, but not just that it also put a significant increase in the demand of air travel. Southwest Airline rapid rewards program is brilliant, so they should continue and expand it even more.

While Southwest Airlines has increased their global distribution system network in recent years, there are still areas

In the opinion of Dr. Grace S. Thomson, “a heterogeneous mix of long and short-haul in very thing segments, passenger, density, and per capita income at end points gives [Southwest Airlines] competitive advantage. The way to establish a company in such a market as the airline industry would be to strategically expand in to airports with less competition. Southwest Airline capitalized on this fact to become a national airline (Keller 2008). Southwest Airlines satisfies what were once negligible markets. Southwest serves “64 cities in 411 non-stop city pairs” (Thompson 2008). Saturating these markets has allowed Southwest Airlines to expand without putting a strain on its pocket book (Keller

Southwest Airlines Company is a well-known low-cost American airline that offers excellent customer and employee service. As of 2009 Southwest is the largest airline company in the world that carries the most number of passengers and it is the third largest passenger fleet of aircraft among the world’s commercial airlines. It also boasts the highest number of customers than any other airlines in the United States. This data come from the U.S. Department of transportation’s Bureau of transportation Statistics. Given the above information, Southwest has been posting profits for the past 37 years [3]. The reason why Southwest has been able to cope

In what ways might airline customers be segmented? Airline customers might be segmented when groups with varying needs and wants are recognized. They can be segmented on a number of different types of things; such as age, gender, location, buying behavior, and demographics.

The management style of Southwest airline is characterized by how greatly it takes care of its employees’ well-being. The management considers it as a mean to achieve higher customer satisfaction: “Keep employees happy, then they will keep customers happy”.

Finally, Southwest flew only Boeing 737 jets in coach. Due to all of these combined operations, Southwest's cost per seat was the lowest among major U.S. carriers.

This proposal addresses the needed steps to be taken in order for Southwest Airlines to see continued growth in the airline industry. Southwest Airlines has been able to remain one of the most profitable airlines in the industry for an extended period of time. Even with the hindrance of the 2001 terrorist attacks involving airplanes and the U.S recession of 2008, Southwest has continued to see strong revenue growth. Meanwhile, other companies were experiencing major losses and in some cases folding. Southwest Airlines has capitalized on the company’s strength of being the top low cost

Also, Front-line Forum is also held for senior individuals discuss how the company is doing and how it was changed. By investigating the question “Have we delivered what we have promised about the culture and spirit to employees”, remedial actions can be taken to keep the culture alive.Sin Ho Man

Instructor Case: Southwest Airlines in 2010 Dr. Deb Sircar University of Greenwich Business School http://create.mcgraw-hill.com Copyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Printed in the United States of America. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without prior written permission of the publisher. This McGraw-Hill Create text may include materials submitted to McGraw-Hill for publication by the instructor of this course.