Southwest Airlines path towards earning the right to fly was a long and stressful process for everyone involved. However, the staff's ability to overcome all odds truly began the formation of Southwest's distinct character, which makes the company so successful today. Founders Rollin King and Herb Kelleher who founded the company in 1967, among others were attacked by Texas airlines such as Braniff, and Continental, claiming the market was already saturated. After three years of fighting these airlines Southwest finally won. The airline began service June 18, 1971 with flights to Houston, Dallas, and San Antonio, and this is how it all began.
The mission of Southwest Airlines is to provide safe, affordable, reliable, timely, courteous, and efficient air transportation and baggage handling service on every flight they operate, as well as produce a fair return on their Shareholders' investments, with dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit.
To increase locally through elevating customers' satisfaction. Improve the effectiveness of Southwest Airlines through creativity and innovation.
Goals & Objectives:
We have divided the goals and objectives of Southwest airline into two sections (financial & strategic), as each one of them employed a different path in determining the company's main goals and objectives. Financial objectives:
1.Improve corporate performance through applying business intelligence. 2.Growing internationally.
Southwest airline had three main strategies, for the third one, we have also provided some elements that accompanied that strategy.
1.It primarily offers short-haul flights that require no connections through a hub, a strategy that helps it avoid congested airports, hold down food costs and minimize airport fees.
2.Southwest employs a successful hedge strategy that protects Southwest from high fuel costs.
3.Southwest Airlines has pursued a "Low-cost/ Low-price/ No-frills" Strategy by offering a Single Class of Services at the lowest possible fares, and therefore making their air travels affordable to a wide segment of passengers. This strategy includes the following elements:
A fare structure that was the simplest and most straightforward of any of major airlines. Gradual expansion into new geographic markets.
Additional flights in areas where rivals were cutting back services. Attractive frequent program.
Additional long nonstop flights.
Strong emphasis on safety, high-quality maintenance, and reliable operations. Improved on-time performance.
The SWOT Analysis:
1.They focused on satisfying employees first, which gave these employees a very strong motive to work harder. 2.Southwest Airlines has the best safety record in the industry. It has not had any fatal events since it began service in 1971. 3.Southwest's culture of hard work, high-energy, fun, local autonomy, and creativity was reinforced through training at its University of People, encouragement of in-flight contests, and recognition of personal initiative.
For this section, we couldn't find but one weakness that existed in the company. Their only weakness was that they limited themselves to the local base only. Opportunities:
1.Adapting to rapid changes in the market (change in oil prices). 2.Expanding into a larger market (International Flights).
1.Accidents due to weather conditions.
3.Unpredictable prices of oil.
4.Unexpected mayhems such as the 11th of September crisis.
Key Success Factors:
In this part of the report, we have listed the most important aspects; that would be found in a successful business...