The airlines industry has historically been one of the most unprofitable industries. The reason can be explained when incorporating Michael Porter’s famous Five Forces Model. The threat of competition is Southwest Airlines Co. (NYSE: LUV) is an American low-cost airline based in Dallas‚ Texas‚ with its largest focus city at Las Vegas ’ McCarran International Airport. It is the largest airline in the United States by number of passengers carried domestically per year and (as of December 31‚ 2007)
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JR Background Southwest: of June 18‚ 1971: Headquartered at Love Field in Dallas‚ it began flying with three Boeing 737 serving following Texas cities: Dallas‚ Houston‚ and San Antonio 2002: Recognized by Fortune magazine as the most admired Airline Company and listed in “100 Best Corporate Citizen” by Business Ethics 2004: Total operating revenue of $6.5 billion and 31‚000 employees. Evaluation Problem: 1. What is Southwest’s Strategy? 2. What is the basis on which Southwest build its competitive
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As of Year 2004‚ the American Airline industry stood at around 783 Million USD/year in terms of operating revenue with American Airlines‚ United and Delta being the biggest players. Southwest was the 6th largest player in the market. Since 2001‚ the airline industry on the whole has been suffering he losses annually. The seat-miles flown have increased manifold over the long term (from 1989 to 2004) indicating increase in adoption of air travel among the population while the revenue per mile has
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The mission of southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth‚ friendliness‚ individual pride and Company Spirit (Ruppel‚ 2012). The people of Southwest are the single greatest strength and most enduring long term competitive advantage (Kelly‚ 2012). Southwest Airlines started out as Air Southwest Co in 1967; serving only three local airport hubs in Texas. The hubs were San Antonio (SAT)‚ Dallas (DAL) and Houston International Airport
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Southwest Airlines Motivation This article that I found covers motivation at the southwest airlines (SWA). The way’s they motivate their employees could affect the way I handle and pick the jobs in my career path later in life. You know their motivation works well when their absence and tardiness are one of the lowest in the area. Southwest airlines is one of the most highly unionized airlines in the airline industry. With the employers taking charge and taking care of each employers‚ customers
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Southwest Airlines Fuel Hedging and Relations to Profitability Abstract In order to stay airborne‚ a passenger airline has to consistently generate profits. Profits come only from paying passengers‚ hence all stratagems must be customer oriented. In a scenario where there are many airlines competing with each other‚ one way of attracting passengers is to keep the cost of flying low‚ while providing value for money. On the other hand‚ expenses must tightly controlled to reach and stay at the
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Southwest Airlines (LUV) Anonymous University of Phoenix‚ AXIA MGT – 245 Organizational Behavior Andrea Benjamin February 10‚ 2008 "You are now free to move about the country." -- SWA Introduction Southwest Airlines was founded more than 36 years ago by Rollin King and Herb Kelleher who decided to create a different type of airline. Rollin King and Herb Kelleher started with the simple idea: “If you get your passengers to their destinations when they want to get there
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Case Study-Southwest Airlines Leadership is one of the four functions that constitute the management process. And it is also one of the most popular management topics. Leadership is the process of inspiring others to work hard to accomplish important tasks. This essay will discuss the visionary and servant leadership and indicate which one is applied to Herb Kelleher and how The visionary leadership describes a leader who brings to the situation a clear and compelling sense of the future and
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Southwest Airlines Business Operations Southwest Airlines continues growth during challenging times with no its low price‚ no frills and good customer satisfaction‚ setting themselves apart from the competition. Organizational change is part of the culture that successfully allows Southwest Airlines to set itself apart. The airline industry is subject to external forces such as fuel prices‚ labor costs‚ passenger economic status‚ and public perception. Southwest Airlines has developed a successful
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Executive Summary Southwest Airlines is one of the most profitable airlines in the airline industry. During turbulent economic times Southwest has managed to continue strong revenue growth in a disastrous environment and has operated profitably for 39 consecutive years (Mintzmyer‚ 2012). Southwest Airlines has capitalized on the company’s strength of being the top low cost carrier by offering a simple and efficient business plan that prides itself on customer service. Southwest utilizes only the
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