Southwest Airlines
Essays

This paper covers the airline industry in the United States, with some of the lessons learned since the start of deregulation in the 1970's to today. The airline's overall economics have changed significantly, from a…

The book Guts: Companies That Blow the Doors off Business-as-Usual, by Kevin and Jackie Freiberg, is essentially a "how to" book centered around making a company a success with creative thinking put forward by fearless…

Southwest Airlines was founded on the premise that an airline needs to put its customers and their needs at the center of all operations, and further create a customer experience that is highly differentiated, memorable and sought-after by passengers. Southwest has surpassed even its own initial expectations in these areas. The culture of Southwest galvanizes the employees, customers, stakeholders, suppliers and partners into a cohesive value chain all aimed at keeping costs down and increasing lifetime customer value through loyalty (Krames, 2003). Due to its excellent control of costs and aggressive use of fuel hedging, all supported by a very customer-centric, positive culture, Southwest is the only U.S.-based airline to never file for bankruptcy protection, much less ask for a government handout (Rhoades, 2006). Southwest is one of the most unique service businesses in the world due to its ability to translate a core set of values exemplified by a whatever it takes attitude of service to the passenger, friendliness, individual pride, and Company Spirit (Strategic Direction, 2005). Southwest Airlines employees are empowered to take any action that is ethical and legal to ensure customers' satisfaction (Hardage, 2006). The uniqueness and highly differentiated nature of the Southwest culture is also attributable to the thirteen core values that founder and CEO Herb Kelleher put into place with the company was founded (Freiberg, Freiberg, 1996). He wanted to create a culture of accountability, transparency and trust, in addition to allowing employees to be themselves as well. Mr. Kelleher also believed that when employees were fulfilled in their work, they would be willing to go the extra mile for customers as well (Krames, 2003). All of these assumptions turned out to be correct, and led to the definition of the thirteen values the company is based on. These thirteen values include seeking out low cost yet high value solutions to customers' challenges and problems; relentless pursuit of profitability; family; fun; hard work; individuality; ownership; legendary service; egalitarianism; common sense and good judgment in serving customers; simplicity; and altruism. These values are so critical to the success of the company that new employees are screened using procedures to see if they value them, while also submitting to a 360-degree evaluation cycle within six months of being hired (Hardage, 2006). Southwest is serious about keeping their culture highly focused on the thirteen core values, while also ensuring their new hires have an immediate and very clear idea of what it means to be passionately focused on customer satisfaction. No other airline comes close to Southwest's commitment to cultural excellence.

Economic value added is net profit, or it could also be framed in terms of cash flow. The cost of doing business simply the business' cost structure. Net profit is the earnings that go beyond the cost of doing business,…

While all businesses strive to attain profitability, there are those market and industry factors that force organizations and businesses into cost leadership strategies. The intent of this analysis is to explain which…

This paper offers a RBV (resource-based view) of Southwest Airlines, followed by a SWOT analysis. Southwest has sustained a competitive advantage by offering low-cost flights with an unusually high level of service, compared with its rivals. Its aggressive fuel-hedging program has also generated a competitive advantage for the firm. It is attempting to address potential weaknesses by offering international flights.

Gaining market share in many market segments requires battling competitors on a daily basis to gain new customers and keep existing ones. The use of attack strategies needs to be part of a broader strategic market plan…

This report aims to present a summary of findings for a research study regarding the airline industry. The objective of this project was to first, gain new experience in the analysis process of an entire industry from…

Southwest Airlines is the nation's low fair, high customer satisfaction airline. It mainly serves short haul cities, offering single class air transportation, which aims for the business commuter as well as leisure…

Publicly and privately-held companies are run very differently. They each have different laws and statutes to obey, different policies and procedures for operation, and different accountability measures.