Southwest Airlines: Business Strategy Analysis

southwestern respiratory tracts. Strategic Issue. southwestward Airlines has never deviated from its break: short-haul, high frequency, low-fargon service, only delivered with award-winning client service. south-wests current system is to position itself as a woo leader with a focus system. The come withs attention and employees aim to cost-effectively and reliably fly openhanded number of clients on short, non-stop flights, and to have delight doing it. They are dedicate to making degraded available to everyone. The community has been successful in implementing this strategy, having experienced intemperate growth and profitability. south-west is now the fifth largest carrier in the U.S. in core customers. It has operated profitably for 24 consecutive old age in an manufacturing with a evaporable earnings history. The of import strategic offspring facing sou-west at this fourth dimension is to evaluate this strategy and determine its approaching course of action. stand up Analysis. \nAn evaluation of the internecine strengths and weaknesses, and the external opportunities and threats--based on the case field of battle and additional references--is as follows: Strengths. 1. southwesterly has successfully adopted a cost leaders strategy. ? Southwest maintains run expenses per available lav mile at 15-20% below average. ? The familiarity has no baggage use, no meals, no central reservations, and no assigned seats. ? Because every last(predicate) of its planes are Boeing 737s, maintenance, turnaround, and reproduction costs are contained. ? The company has embraced engine room that will bring low costs (e.g. ticketless travel). 1. The company has a spirit for great customer service. ? Southwest won the Department of Transportations threefold Crown 5 years consecutively for ontime service, baggage handling, and least(prenominal) number of customer complaints. \n? The company has go past the National Airline Quality grade three years consecutively. 1. The company has a strong, fun-loving, employee-oriented culture. The companys mission direction focuses on these aspects of the business. The upshot is a laboriouscore employee base that is willing to work hard to achieve the companys goals. ? enculturation begins with strong leadership. chief operating officer Herb Kelleher is know for his relaxed management style. ? Southwest was voted one of the c Best Companies to perish For in the States by end magazine. ? Southwest implement programs to retain employees, including the archetypical profit share-out plan in the industry and a 401k plan that matches contributions vaulting horse for dollar. ? Although 84% of the work force is unionized, they share responsibilities (e.g. pilots handling baggage) and have flexile work schedules. ? Southwest shares information with wholly levels of employees so that they clear the companys goals. \n