This website uses cookies to ensure you have the best experience. Learn more

Why Southwest Airlines Did So Well? This Is An Analysis/Report On Strategies Implemented By Southwest Airlines.

659 words - 3 pages

The reason that Southwest Airlines performed so well comprised many factors. To make the analysis as short and clear as possible without repeating the case too much, I see Southwest's success can be sub-divided into 3 areas of market, cost control, and quality from way the case author has organized.The far most important factor is that Southwest has chosen the type of market it entered. Southwest Airline found its niche market in short-hauls. Rather than competing long flight hours with other airlines, the airline has chosen to specialized itself in a replacement between ground-transportations and other airlines, and compete with them. Southwest has marketed itself well in the time that short-haul was what consumers were looking for. In another words, the market environment was suitable during the time of its launch.Besides market that Southwest has chosen, the quality of the service was also very important for its success. I mean quality not in terms of providing luxurious first class seats and food, but in terms of on-time percentage and fast travel time overall. Externally, establishing self ticketing machines for faster check-ins, closer location to city commute, launching distinctive customer service really brought many customer loyalties to Southwest Airlines.Third, cost control and pricing. Southwest has a very strong competitive strategy that enables the company to dominate the market, as well as sustaining itself from the price wars. What I think of the most brilliant idea was the quick turnover rate of airplane costs that mentioned in page 120 of the case study. Instead to keep the planes until they're not operable, the average life for Southwest's planes is 7 years. With some simple math, the difference between $27 millions in 20 years, and $7 million in 7 years, is .35 million a year, per plane. That means Southwest Airline is saving couple millions of dollars beforehand comparing to other airlines. Price that is well below industry average and other...

Find Another Essay On Why Southwest Airlines did so well? This is an analysis/report on strategies implemented by Southwest Airlines.

Southwest Airlines Essay

2383 words - 10 pages no longer valued as an asset they will run to the company’s competitors even if it means spending a little more money to feel that wonderful feeling of “valued customer” (Welch, 2005). Southwest Airlines should have their SVP of Customer Relations to make sure that every negative complaint receives a response and to explain the reason why this procedure was implemented, they should also reiterate the company’s customer commitment and assure them that they are very important. Southwest can also offer some of these customer free boarding passes just to show their appreciation for being a customer of Southwest Airlines (Welch, 2005).

Southwest Airlines Essay

2034 words - 8 pages ever could have hoped. This helped turn Southwest Airlines planes around in less than half the time of its competitors (1999). How you may ask is this possible? Employees embark on their tasks with passion, not because of possible retribution, but out of aspiration to make their airline the best (1999). They did this by working together to meet demands. It would be common to see the baggage handlers, flight attendants, and pilots fight to beat the

Southwest Airlines

1907 words - 8 pages Q1. What is Southwest’s strategy? What is the basis on which Southwest builds its competitive advantage? Q2. How do Southwest’s control systems help execute the firm’s strategy? The Southwest Airlines strategy is best explained by its co-founder Herb Kelleher during a talk at Wharton: “It’s an obsession with keeping costs low and treating employees well and a commitment to managing the company during booms with an eye to the busts that will

Southwest Airlines

2390 words - 10 pages company's standards and goals. It says a lot about a company who has never had a layoff or a strike, in an industry which has seen competitors constantly have to deal with laying off employees and or employees going on strike, because job security and wages are not at levels they expect. Southwest does a great job managing finances and is one of the only airlines in the US which can year in year out report profits. They can do that by having a plan in

Southwest Airlines

2974 words - 12 pages This is the historic background of an American Airline company called the Southwest Airlines Co. based in Dallas which still exists and operates with great success between 57 cities in 26 states of the US, by over 300 airplanes , providing primarily short-haul, high frequency, point to point, low fare service . Through this essay we will see an analysis of the company’s advantages and disadvantages through a SWOT Analysis. We will try to

Analysis of Southwest Airlines

2695 words - 11 pages -country flights, seasonal demand changes, and congestion in Detroit as well as long delays. Although the aircraft tend to be more fuel efficient on longer flights, so much fuel is burned that the passenger load must be very high to be profitable.Managers are confident of Southwest's ability to fly three round trips a day with an average load factor of 65%. However, when analyzing the financial information involved with this route, we determined

Analysis of Southwest Airlines

884 words - 4 pages introduction of long haul competition via Southwest Airlines, in part by the more modern beginning of competition. This competition has been very potent and obviously very favorable for the consumer and made the market very competing. It is being looked forward to the beginning of comparable competition on continental markets, which would do a great deal of good to the dominant airlines on the continent for that to occur. “The reason is the airline

Southwest Airlines - 1373 words

1373 words - 5 pages they would match the going prices on all routes on which they went head-to-head with Southwest." (p.21, study case text) By this statement it declared a war on Southwest.Continental Airlines threatened Southwest Airlines by imitating many of Southwest's practices (as concentrating on short-haul or including the use of humor by flight attendants).Another potential threat to Southwest Airlines is the will to keep their fares simple. By not using the

Southwest Airlines - 1897 words

1897 words - 8 pages Team D - Control Mechanisms PAGE \* MERGEFORMAT 8 Southwest AirlinesSouthwest Airlines is a forceful organization that has been made popular by many people. The corporate culture is so popular that this organization has gained attention. This type of culture makes it easier for people committed and wants to be innovated and grow as a leader, to want to work for a company such as this. At this organization, it will be easy for someone to

Southwest Airlines - 3868 words

3868 words - 15 pages the city about Southwest and the reasons why it is smart to fly Southwest. For example, upon entering the Louisville, Kentucky market, Southwest compared the city's smartness for picking horses to the smartness of flying Southwest.The reasons for Southwest's success are well documented: it focuses on short-haul flights with an average distance of 425 miles. It does away with meals, in-flight films, designated seats, multiple seating classes from

Southwest Airlines - 1733 words

1733 words - 7 pages importance and the hierarchy of this or that position. (as others' airlines employees were complaining that pilots and flight attendants were accommodated in different level hotels and pilots were always on fight with mechanics). If the teamwork is so important for the company, providing training on teamwork and building the team (what Southwest did) is also really important. There are many other things to talk about, but I would like to conclude

Similar Essays

Environmental Analysis: Southwest Airlines

2415 words - 10 pages world according to a survey by Fortune magazine (Fortune Magazine, 2013). Southwest uses the exchange symbol LUV on the New York Stock Exchange (NYSE).This paper will summarize an environmental scan of Southwest Airlines to include an analysis of the most important external environmental factors in the remote, industry, and external operating environments, the most important strengths and weaknesses of the organization, an assessment of the company's

Southwest Airlines Essay

2180 words - 9 pages . Introduction The growth of the commercial airline industry during the second half of this century was truly remarkable. It has had an innovatory impact on economic, technological, and cultural development throughout the world. This paper analyzes Southwest Airlines, and how they are using information technology to gain competitive advantage. First is the industry analysis which gives a sense of what the commercial air transportation

Swot Analysis: Southwest Airlines

1851 words - 7 pages look at Southwest Airlines' website ( reveals an expansive look at a company dedicated to customer service. From the booking opportunities to the ability of being able to access the customer service commitment Southwest has made itself into a customer friendly company. Even the company's stock ticker is listed as LUV as in customers "luv" Southwest Airlines. This is not just clever marketing but it also holds true in its business

Southwest Airlines Financial Analysis

4471 words - 18 pages . Southwest made the wise decision to reinvest in order to continue to make improvements to their company, so they could stay healthy and successful over the long-run.Southwest Airlines Cash FlowsThe statement of cash flow of a firm is designed to provide information about cash receipts and cash payment of that firm during a period (Marshall, D., et al, 2001 229). Through the following discussion below, an in-depth analysis of the statement of cash