The Value Proposition Of Southwest Airline Is Based Safety Reliability, Friendliness, And Inexpensive Service Essay

In this paper we analyze the 2011 Southwest airline annual and then major an in-depth analysis of its mission and vision. The analysis of how its performance is linked to its mission and vision is also carried out. This is then followed by how its corporate goals are tied to its mission and vision. This paper then presents a competitive and market analysis with the aim of determining the company's strengths and weaknesses. A recommendation on the most appropriate strategy for the maximization of company's profits is then carried out.

According to Greyhound, it takes a total of sixty-five hours to drive from New York to Los Angeles by bus with no transfer (“Choose your outgoing trip,” 2016). The same trip with Southwest Airlines takes approximately eight hours (“Select Departing Fight,” 2016). In 1971 Southwest Airlines became an official airline company when they won a U.S Supreme Court ruling and purchased three Boeing 737 (Thomas, Peteraf, Gamble &Strickland, 2016, p. c-341). As of 2014 Southwest’s fleet has grown to an astonishing 665 aircraft that recorded 902 thousand flights in 2013 (Thomas, et al., 2016, p. c-341). By evaluating Southwest’s industry maturation, strategies, their success in the sector it will be possible to make recommendations for Southwest 's future growth.

The value chain is one of the critical elements of a company’s strategy in today’s competitive world, because company’s profit depends on how the successful and efficient it runs its operations and how the end product appeals to the customers at a price that covers all the expenses of the company.

Colleen Barrett, President Emeritus of Southwest Airlines led with love and her company succeeded. Lead with LUV is based on Colleen Barrett and the different ways to create success. There are five main points of the book that I will discuss: What is leadership, Celebrating Successes, Having Mentors, The Triple Bottom Line, and A Compelling Vision.

Southwest’s primary competitors are JetBlue and Spirit Airlines. These two airlines, like Southwest, focus on innovation and low airfare costs. Among the largest airlines are American, Delta, and United. However, these mainline carriers are far from posing any major threat to Southwest. (Coulter, pg 253)

None of the Southwest’s competitors can completely copy what Southwest is doing, because Southwest is a values-based firm. Southwest’s strategies can be imitated, but Southwest’s culture cannot be copied. I would like to explain what the values-based diverse firm looks like, how Southwest is values-based diverse, and why Southwest’s culture cannot be copied. The following are the relevant facts, the analysis, and justification using supporting evidence.

Everyone that is a member of Southwest feels needed and loved by the rest of the company. There are countless stories of employees and customers who have felt the love and benefited from the

The value chain is one of the critical elements of a company’s strategy in today’s competitive world, because company’s profit depends on how the successful and efficient it runs its operations and how the end product appeals to the customers at a price that covers all the expenses of the company.

The domestic airlines in the US market is the broader context in which Southwest Airlines conducts its business. As a domestic airline, Southwest Airlines provides air transportation for cargo and passengers along scheduled routes and on routine intervals. The airline industry is a service industry comprised of the following services: coach class passenger transportation, first class passenger transportation, business class passenger transportation, and cargo. However, Southwest Airlines is unique from many of its competitors in the airline industry because it does not provide any distinctive classes of transportation. The single class of transportation it provides may be considered coach. Therefore, the two services that Southwest

Every company go through challenges. It is part of the game. The key to this situation though, is to know how to turn a weakness in to a strength, or a threat in to an opportunity, and gain all the positives that a company can get. Most of the times people do not understand that a company needs these challenges to develop in a better corporation. It is impossible for a business to grow and improve without difficulties. That being said, Southwest Airlines has multiple challenges, but the company is whilling to change these weaknesses in to strengths.

Value creation means increase the value of products, service and even business to meet the customers’ needs and requirements so that they can get competitive advantages. (Business Fundas, 2012) As we analyzed, fast food industry’s threat of new entrants is low and the availability of substitutes is high. It’s a fare market which the buyers have strong powers.

Every entrepreneur would have once in for a while had tumbled upon the success story of ‘The Southwest Airlines’. The founder, Herb Kelleher in one of his interviews to CNBC mentions that there were key moments in the history of the airline where things could have gone horribly wrong, but he came up with out-of-the-box solutions that not only saved his business, but made it thrive.

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)

operated. During this time, travel agent fees were going through the roof and reserving an airline ticket was a complicated, drawn-out process. To counter this, Southwest implemented its own reservation system tailored to their own needs, which also included the industry’s first paperless ticketing system; but this wasn’t the end of IT innovation from Southwest Airlines. In 1995, Southwest.com was launched, and the online ticketing and reservation system was launched in 1996. Soon thereafter, Southwest Airlines ticket sales were primarily coming from their online reservation system (70%). By the late 90’s, Southwest.com was the most visited airline website [4].

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