Case Study Southwest
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Transcript of Case Study Southwest
Southwest Airlines’ Mission Statement
The mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride,
and Company Spirit.
Herbert (Herb) D. Kelleher Executive Chairman of the Board
SWA Board of Executives
SWA Board of Executives
Gary C. Kelly Vice Chairman of the Board and Chief Executive Offic
er
SWA Board of Executives
Colleen Barrett President
In 2002, Southwest Airlines Emerges Into the New Generation With a New Corporate Log
o
A Boeing 737-300 Aircraft in Southwest Airlines Historic Colors
Southwest's New Paint Scheme
SWA’s Strengths
1. Finacial Stability
2. Record of Developing Underutilized Airports
3. Outstanding Record of Customer Satisfaction
4. Excellent Employee Relations
5. Commitment to Community Involvement
The Very First Advertisement in 1971
Two new "airline-within-an-airline" competitors faced off against Southwest in 1994. While other carriers may offer low fares on a handful of routes, only Southwest Airlines offers low fares on every seat of every flight, to every city we serve.
Advertisement against
United Airlines in 1994
Questions
1. At the beginning, what forces in the environment most effected Southwest Airlines, and what opportunity was Southwest founded to take advantage of?
Forces: 1) Litigation by Barniff and Texas International 2) CAB’s Jurisdiction to prevent competition in the state
Opportunity: To provide short – haul, intrastate service at a reduced fare on frequent flights to meet the needs of local travelers
Questions
2. How would you chart the development of Southwest’s business – level strategy over time?
1971 Establishment1973 - Ten – Minute Turnaround
- Half – Price Fare- Premium Liquor Attached
1979 Expansion - An Interstate Airline- Houston – New Orleans
1989 Expansion into California1991 Expansion into Chicago1996 Expansion into Florida
Questions
3. What kinds of dynamics characterize competition in the airline industry?แรงขบัเคล่ือนใดที่เป็นตัวกำ�หนดลักษณะก�รแขง่ขนัของอุตส�หกรรมก�รบนิ
1) Air Fare2) Service3) Flight’s Frequency and Punctuality4) Immediate Reaction of the Competitors
Questions
4. What do you think the future holds for Southwest?
Optimistic:- Grow rapidly and stably within the United States- Become “World Wide Airline”- Get more online customers
Pessimistic:- Earning might be affected by oil price and terrorism- More competitors
Quarterly Balance Sheet
2004
Cities, States, and Airports
www.southwest.com
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