The overall corporate strategy of Southwest Airlines is based on the following four internal operations pillars. Southwest has been able to overcome these challenges by concentrating on fuel edging strategies, greater focus on standardization of aircraft and supplies to drive down operating costs, and a focus on delivering an exceptional customer experience on each flight Michalisin, Karau, Tangpong, 2004. Operational, Safety, and Health Regulation 1. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. This leads to unstructured learning process resulting in missed details and at worse wrong conclusions. As compared to other airlines, the delay time is fewer than 50%, which is considered as a positive point for the company.
It offers flexible work rules for its employees and it encourages cross-utilization culture. . It also expects that the general-aviation fleet will grow 1% a year, from 234,015 in 2008 to 275,230 aircraft in 2025. . The foundation and catalyst of this unique aspect of the Southwest Airlines culture is predicated on the thirteen cultures the founders put into place when launching the company Freiberg, Freiberg, 1996.
One notable way of cutting cost that the company used was cutting fuel expenses. The opportunities gained by the purchase of Airtran will allow the company to being capitalizing on the international market, and thus helping reduce the economic strain created by the reduction of domestic travel. For this purpose, it can use electronic, print, and social media marketing channels. Recently, a law has been passed to repeal the Wright Amendment to be in effect in 2014 Thompson and Gamble, 2012. .
Theymeticulously workto maintaina unique culture bycarefullyreviewingeachapplicantandhiringthe bestfits. All of this has resulted in Southwest achieving milestones regarding its service. The low-cost structure is one of the competitive advantages, as it has enabled southwest to offer low fares, drive traffic volume, and grow market share year on and also lead the industry in the segment. The airline has its headquarters on the grounds of Dallas Love Field in Dallas, Texas. This is not just clever marketing but it also holds true in its business practices. Other full services airlines achieving economies of scale with increased mergers and acquisitions. Once refreshed go through the case solution again - improve sentence structures and grammar, double check the numbers provided in your analysis and question your recommendations.
Support your points by real examples. Young,middle class,and frequentflyersrarelywanttopay extraforthe luxurieslistedabove,howeverSouthwesthasmanaged successfullytocapture thatexactmarket. . Exploring neighboring destinations without increasing mileage coverage by far may be the break the airline needs from the saturated market. In 1993 President Clinton appointed the National Commission to ensure a strong competitive industry. Let's face it: Even the thought of making positive change is hard for most people. Southwest fought against this injustice and finally arrived at an understanding with the courts which is known as Love Field Compromise.
So southwest Airline should make the use of it and in this way operating cost will be reduced which will result in better customer deals. And these employees are the one who helps the airline to move towards greater success. Time line also provides an insight into the progressive challenges the company is facing in the case study. Methodology: Actual results should be compared with the plan results by regularly getting feedback through meetings. Dominant market position in North America Southwest is the largest domestic carrier by total passengers, carrying over 101. It also uses electric ground power for aircraft air and power support, auto throttle and fuel efficient initiatives.
The greater the level of trust and an egalitarian mindset in a company, the greater the level of information velocity and corporate performance Kochan, 2006. Photo credit: Wikipedia Southwest Airlines Corporation Description Southwest is a passenger airline that provides scheduled. Also, Southwest served 437 nonstop city pairs. The company has not only grown through expansion in its business operations, but it has also made a number of successful acquisitions in different related service industries. Bailey, 2007 Point-to-Point Service Point-to-point flight service used by Southwest airlines is maximizing its operational efficiency and cost effectiveness.
Although an upgrade would be a tremendous boost for the airline, research must be conducted as to which plane would benefit Southwest Airlines the most. Southwest competes on the basis of price, customer service, costs, frequency and convenience of scheduling, frequent flier benefits, efficiency and productivity. This competition could be more significant during economic downturns. Another consideration should be in upgrading the now 29 year old Boeing 737-300 Wikipedia, 2009. There are no formal union-management structures or processes There are no formal union-management structures or processes for consultation and representation beyond negotiations and grievance procedures.
The company has an efficient and dedicated workforce that is committed to provide quality services to the company's customers. Aside from its weaknesses, Southwest Airlines has also been keeping track of opportunities that currently exist in the market. Another consideration should be in upgrading the now 29 year old Boeing 737-300 Wikipedia, 2009. Another weakness in the business operations of Southwest Airlines is its dependence on a single airplane manufacturer. The way you treat your employees is the way they will treat your customers.
Southwest operates more than 3,300 flights a day coast to coast, and is the largest U. The load factor was 76. Hi, I'm Larry Rudwick, executive business coaching consultant, a. Southwest flies 4000 flights on weekdays to about 100 locales in America and 10 additional countries during surges in peak travel periods. This indicates a very successful network connecting destinations that has indeed contributed to its industry leading market share in a highly competitive market. It is very common for airlines to project losses in their financial statements.