Southwest Airlines Case
Southwest Airlines Case Study
1. Company Overview
Southwest airlines began in 1967 as a low-cost, low-fare, customer-friendly air service shuttling passengers between San Antonio, Dallas and Houston, Texas. Founded by Rollin King and Herb Kelleher, Southwest moved from a small commuter transport of 18 round trip flights within Texas to a bustling market share leader providing more domestic flights than any other airline within the industry. Within two years of its first flight the airline was able to report profits in a trend that has continued since 1973, despite industry downturns, economic recessions and intense rivalry attacks. No longer the quirky underdog, Southwest has established itself as the low-fare, low-cost industry leader. 2. Situation Analysis :
INTERNAL FACTORS
Strategic Position: At their core Southwest Airlines (SWA) is truly a mission driven company driven by their triple bottom line – Performance, People, Planet. Through there website they communicate what is most important to them – their employees and their customers.
Southwest Mission
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. To Our Employees
We are committed to provide our Employees a stable work environment with equal opportunity for learning and personal growth. Creativity and innovation are encouraged for improving the effectiveness of Southwest Airlines. Above all, Employees will be provided the same concern, respect, and caring attitude within the organization that they are expected to share externally with every Southwest Customer.
Financial Resources: Since Herb Kelleher began serving as CEO in 1981 Southwest Airline’s has seen their financial growth take off and they have not looked back. * In 1981 they had 27 planes flying and $270 million in revenues * 2001 they flew 350 planes and had $5.6 billion in
1. Company Overview
Southwest airlines began in 1967 as a low-cost, low-fare, customer-friendly air service shuttling passengers between San Antonio, Dallas and Houston, Texas. Founded by Rollin King and Herb Kelleher, Southwest moved from a small commuter transport of 18 round trip flights within Texas to a bustling market share leader providing more domestic flights than any other airline within the industry. Within two years of its first flight the airline was able to report profits in a trend that has continued since 1973, despite industry downturns, economic recessions and intense rivalry attacks. No longer the quirky underdog, Southwest has established itself as the low-fare, low-cost industry leader. 2. Situation Analysis :
INTERNAL FACTORS
Strategic Position: At their core Southwest Airlines (SWA) is truly a mission driven company driven by their triple bottom line – Performance, People, Planet. Through there website they communicate what is most important to them – their employees and their customers.
Southwest Mission
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. To Our Employees
We are committed to provide our Employees a stable work environment with equal opportunity for learning and personal growth. Creativity and innovation are encouraged for improving the effectiveness of Southwest Airlines. Above all, Employees will be provided the same concern, respect, and caring attitude within the organization that they are expected to share externally with every Southwest Customer.
Financial Resources: Since Herb Kelleher began serving as CEO in 1981 Southwest Airline’s has seen their financial growth take off and they have not looked back. * In 1981 they had 27 planes flying and $270 million in revenues * 2001 they flew 350 planes and had $5.6 billion in
References: Schlangenstein, M. and Hughes, J. (2010, September 28). Southwest CEO risks keep-it-simple strategy to reignite growth. Bloomberg.com. Retrieved July 8, 2012, from http://www.bloomberg.com/news/2010-09-27/southwest-airlines-agrees-to-buy-airtran-for-1-4-billion-in-cash-shares.html Southwest Airlines Co (SWA). (2010) United States Securities and Exchange Commission: Form 10K. Retrieved July 8, 2012, from http://sec.gov/Archives/edgar/data/92380/000119312512049647/d293991d10k.htm