Southwest Airlines

Southwest Airlines

1. Why has Southwest Airlines been so much more successful than its competitors?

After initially reading this case study on Southwest Airlines, I have come to the conclusion that Southwest Airlines is a very successful company. Southwest Airlines prides themselves in customer satisfaction. There first goal is making sure the customers are completely satisfied. They made flying more of a joy than a chore. There was no first class, no assigned seating, and this cut down on time. Southwest also offered low fares, almost 60% lower for coach fares than other airlines. Employees were also an integral part of the airlines success. Southwest made sure that their employees are more to the company than just workers. Southwest wanted to make sure that they were hiring people that best represented the company's mission. In doing so, they hired staff with positive personalities and a sense of humor. These employees were paid wages that were in direct competition with other airlines, they were also offered to participate in the airline's profit-sharing as well as stock ownership programs.

2. How has the original strategy been altered in recent years? How, if at all, have these changes affected Southwest's key success factors?

Since its inception in 1967, few things have changed. The airline has now expanded its routes. Southwest is now flying to more cities than when it was first created. Southwest has also stopped the "open seating" policy and has now conformed to the other airlines in having assigned seating. They have also instituted and "bags fly free" policy. I don't believe that these few changes have affected Southwest's key success factors, if anything I believe it enhanced them. Their main goal is customer satisfaction and they have not deviated from this.

3. What kind of things over which Southwest's leadership has some control could go wrong? What should be done to make sure they do not happen?

Adding flights could go wrong. Adding too many flights might be a waste of money. If there is no demand for these added flights the airline could actually be in the negative column. Southwest has to make sure that it stays on top of this. Surprisingly, the added flights have been successful for Southwest.

4. Based on your response to question 3, what further changes, if any, need to be made by Southwest's leadership in the face of the competitive moves and general economic conditions?

I don't believe that Southwest needs to make any further changes. They have outnumbered other airlines in many categories for exceptional service. Southwest has been the only airline to ever win the prestigious "triple crown" of service. This translates to being the best airline in the industry