If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda. Southwest Airlines Description . 6. HR practices have played a big part in SWA’s business success. One of the strategies the company has applied to achieve its vision is reduction of flight charges, hence attracting more passengers. There are many players in the airline industry in […] Southwest airlines decided to choose “point-to-point” strategy, as opposed to “hub and spoke” approach, since such as system enabled the company to improve on their plane utilization. Thousand Oaks, CA: Sage Publications, 2001. 5. Let's see if we can help you! IvyPanda. Southwest Airlines integrated Abilitie’s Finance Challenge™ into its MIT II: Developing Legendary Leaders program to develop talent within the company. At the time of this case study, Southwest airlines was a regional company that flew from point to point within the United States. In my opinion, the airline’s previous success in achieving operational efficiency is a critical success factor in its future growth. Pisano, Gary. Southwest’s internal strength is hedged on a strong brand presence in the United States. Figure – 01: ROCE of Southwest Airlines for the Years 2010-2014. “Diversity Finds its Place.” HR Magazine, 51 (2006): 56-61. I. Rodriguez, Robert. The company appears in FORTUNE’S list of top admired companies. SOE11505/SOE11405 Contemporary Issues in Strategic Management End of Module Coursework: Case Study Assessment This summative assessment accounts for 90% of your final grade and is based on a case study of Southwest Airlines. With more than 59,000 employees, Southwest operates about 4,000 departures a day during peak travel season. Southwest Airlines: A Case Analysis ORGANIZATIONAL ANALYSIS It is evident that the greatest strength that Southwest Airlines has is its financial stability. Currently, its customer base has grown to over 20 million customers a year. We will write a custom Case Study on Southwest Airlines Analysis specifically for you for only $16.05 $11/page. Williams, Steve. Southwest is the largest operator of the Boeing 737 worldwide, with 753 in service. 1. Southwest Airlines integrated Abilitie’s Finance Challenge™ into its MIT II: Developing Legendary Leaders program to develop talent within the company. Corporate Strategy: Vertical Integration and Diversification 9. The financial stability has persisted even when other major airlines were making losses. The value chain framework illustrates the internal environment of the Southwest Airlines that it uses to create value for the customer. Print. Retrieved from https://ivypanda.com/essays/southwest-airlines-corporate-strategy/. ensure the integrity of our platform while keeping your private information safe. Southwest Airlines Prices Analysis Southwest company model of adopting the low-cost strategy in generating demand has a relationship to this quantity demand. It announced its first profits in 1973. Creating an R&D Strategy. Using its low-cost, no-frill, customer friendly, point-to-point operational strategy, Southwest has been able to sustain considerable growth over the years and reported straight profits since its incumbent. External Analysis: Industry Structure, Competitive Forces, and Strategic Groups 4. Explain the importance of a successful power transition or a company that … In June 1971, air transportation was not seen to be the primary transportation tool because of all the time wasted from checking in, expensive price, and air time. Development of alternative means of transportation e.g. Southwest Airlines also experiences the threat of volatile fuel prices. The company is known as a low cost carrier, with quality services. Mgmt & Organizational Behavior (MGMT … Another problem is the stringent competition within the industry. In addition, the company has profitably operated for over 40 years. Some are the key competencies of Southwest that account for its stable success in airline industry despite of intensive competition. Growth of cities due to population increase in the U.S. (3 million people per year) leads to high air travel demand. SOUTHWEST AIRLINES Case Study Solution Introduction: The South West Airlines is the second largest U.S based Airline in the world comprising of 144.6 million total passengers boarded in 2015. From the case, Southwest Airlines fostered its global footprint by first growing its human resources by hiring 4,000 employees per year an initiative that supported its global growth strategies. Southwest Airlines’ Corporate Strategy Case Study Southwest Airlines (SWA) has remained a market leader in the airline industry dominating the domestic travel segment. New forms of advertising such as internet advertising may boost growth, 7. The current paper discusses leadership changes that occurred in Southwest airlines in the 2001 when herb Kelleher promote two of his close aids for leadership positions; Colleen C. Barette, Vice-presidents for customers, promoted to be the president and chief operating officer, and James F. Parker, general counsel promoted to be the chief executive officer. July 23, 2020. https://ivypanda.com/essays/southwest-airlines-corporate-strategy/. Southwest Airlines’ Opportunities 1. The fuel hedging strategies that Southwest Airlines has been implementing have aided the company’s cost leadership strategy. Its unionized employees exhibit enthusiasm and extroverted personalities that characterize the Southwest spirit. Making Better Business Decisions: Understanding and Improving Critical Thinking and Problem Solving Skills. http://www.iata.org/pressroom/pr/Pages/2015-02-05-01.aspx, Assignment: Oligopoly and Monopolistically Competitive Firms -MT445, The Patient Protection and Affordable Care Act–Obamacare (Public Policy & Public Administration), The Future of Energy: Guiding Decisions with Evidence, 1. Service The above financial analysis highlights the strong financial performance of Southwest Airlines compared to its biggest competitors, American and United Airlines. This SWOT analysis highlights how the business and its competitive advantages and limitations are partly under the influence of Southwest Airlines Co.’s generic strategy and intensive growth strategies.For example, the company’s strategic planning and related decisions determine which SWOT elements are prioritized, such as in choosing to focus on a single threat and a single weakness … This firm has been experiencing challenges in maintaining competitiveness with the market. However, challenges related to increasing business rivalry, operational costs, and rising passenger demand threaten its competitive position. The Brand History The history of Southwest began in 1967 at a hotel bar in San Antonio, Southwest founders Herb Kelleher and Rollin King took out a napkin and scribbled three points of a triangle representing their novel idea. 3. According to a report from the International Air Transport Association (2015), there has been a tremendous growth in demand for air travel over the years. In May of 2011, Southwest acquired AirTran airlines, and is in the process of integrating their operations. The company differentiates itself from competitors by offering top notch customer service. Read Case Studies On Southwest Airlines Case and other exceptional papers on every subject and topic college can throw at you. The reduction on price in the airline industry stimulated an additional air traffic by 60%. The airline’s cost-cutting measures, exceptional customer service, positive organizational culture, and low-fare business model are the key pillars of its success. The company has managed to create a strong positive image among many individuals in the U.S. I will analyze Southwest Airlines motivating strategies by applying Maslow’s theory of … Retrieved from http://www.rita.dot.gov/bts/press_releases/dot004_14a, Southwest (n.d). 1. Some of the major aspects covered by the study are strengths and opportunities which are conducted with the help of an elaborate SWOT analysis. The company is equally unsure whether its point-to-point business strategy will apply as it tries to expand its domestic operations. Southwest Airlines Co. is a major United States airline headquartered in Dallas, Texas, and is the world’s largest low-cost carrier. Some are the key competencies of Southwest that account for its stable success in airline industry despite of intensive competition. Southwest Airlines Co. is a major American airline headquartered in Dallas, Texas, and is the world’s largest low-cost carrier. We will write a custom Case Study on Southwest Airlines’ Corporate Strategy specifically for you for only $16.05 $11/page. The airline’s cost-cutting measures, exceptional customer service, positive organizational culture, and low-fare business model are the key pillars of its success. Service Southwest Airlines’ Case Study Questions? International Air Transport Association (2015). In addition, this case study will provide recommendations to guide the organization’s strategy and actions. IvyPanda. This Case Study Analysis will attempt to take an objective look at the key issues and underlying implications of Southwest Airlines with respect to its impact on the airline industry. bullet trains reduces air travel demand. Introduction of new air regulations by the government which increase operational costs. Fluctuations in fuel prices which often leads to high operational costs, 3. Pocket Guide to Transportation 2014. 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