Southwest Airline Case Solution

COMPANY MISSION

To dedicate the sense of friendliness, warmth, company spirit and the individual pride to the highest quality of customer service is the mission of the Southwest Airline. With the strong focus on achieving the competitive edge in the industry, the company is committed to provide its employees a stable working environment with equal opportunities for learning as well as personal growth. Creativity and innovation are encouraged for improving the effectiveness of Southwest Airlines in the eyes of passengers. Above all, employees will be provided the same concern, respect, and caring attitude within the organization that they are expected to share externally with every Southwest customer.”

The mission statement of Southwest Airline shows that the company has strong commitment to its employees in order to gain the competitive edge in the market. Southwest Airline is the first major airline that provides the same respect for its employees that is provided for its customers.

Southwest’s mission statement is unique because it recognizes the worth of its employees within the broader business strategy, which emphasizes on superb customer service and operational efficiency. The employees counter the respect, loyalty and trust that Southwest demonstrates. Southwest’s employees are known for their loyalty, dedication, attitude and innovation.

The employees are the distinguishing factor between Southwest and the rest of the airline industry.Moreover, it is only the human resource in any organization that can help the company in gaining a large market shares in the presence of a number of competitors.

INTERNAL/EXTERNAL ANALYSIS

In order to analyze the company internally as well as externally, its strengths, weaknesses, opportunities as well as threats should be analyzed which are summarized below:

INTERNAL ANALYSIS

 In order to analyze the company internally, its strengths and weaknesses are analyzed which are given below:

STRENGTHS

Southwest Airline deals in the lowest fare carrier which helps the company in attracting a wider number of customers from the major cities of the United States as compared to its competitors. The company has previously achieved a consistent profit position since the year 1973 which gives the company triple crown for its annual performance. The managers of the company are performing their duty of creating value for the share holders efficiently by quickly analyzing the opportunity prevailing in the market and grabbing it. The management of the company, by focusing more on the employees rather than its customers, succeeded in achieving the competitive edge among the major competitors. The company has introduced its marketing web throughwhich the company startedselling its product online. The passengers can easily and within low cost book their tickets.

WEAKNESSES

Despite the strengths of the company, Southwest Airline has some weaknesses as well. The company’s current growth tactics are not up to the level that they should be as compared to the other competitors rather they are very conservative. In order to gain more profit, the company tries to cut the cost from its customers’ service areas which is not the optimum solution. Moreover, the company is not subscribed to the central reservation service which limits its gain. The competitors started adopting the strategies of the Southwest Airline of its innovation and growth strategies. The company is currently servicing only at the national level and yet not able to gain international clients.

EXTERNAL ANALYSIS

In order to gain the knowledge of the company’s external factors, the opportunities prevailing in the market as well as some threats are analyzed which are summarized below:

OPPORTUNITIES

Southwest Airline is the first major airline on the web which can help attract wider number of customers. There are lots of other cities that are currently waiting to be consideredby this company. The company, by providing the lowest cost of seats,has attractedthe customers from going to any other brand. The company succeeded in achieving the greater proportion of booking as compared to the American Airlines. The company with the help of this much amount of operation time period gained the best customer satisfaction among the travel sites.

 THREATS

The first and the foremost threat for Southwest Airline is the increasing prices of the jet fuel, which has a negative impact on the company’s overall return. The strategies as applied by the company for its management and growth are adopted by the competitors present in the market. The new increased tax system is also a threat for the company as it is now required to pay more of its revenues in the form of tax to the government. The government is taking new security measures thereby trying to increase the cost for the company. The issues related to the attacks from the terrorist are always present for the Airline Industry which altogether decreases the customer air travel…………..

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