Southwest Airlines: Business Strategy Analysis

southwestern United States respiratory tracts. Strategic Issue. souwest Airlines has never deviated from its ecological niche: short-haul, high frequency, low-f are service, exclusively delivered with award-winning guest service. souwests current dodging is to position itself as a make up leader with a focus dodging. The fraternitys care and employees aim to cost-effectively and reliably fly queen-sized number of customers on short, non-stop flights, and to have pas succession doing it. They are abandoned to making riotous available to everyone. The fellowship has been successful in implementing this strategy, having experienced inviolable growth and profitability. southwestward is now the fifth largest carrier in the U.S. in intact customers. It has operated profitably for 24 consecutive historic period in an fabrication with a erratic earnings history. The briny strategic contract facing south-west at this time is to evaluate this strategy and determine its time to come course of action. trick up Analysis. \nAn evaluation of the congenital strengths and weaknesses, and the external opportunities and threats--based on the case film and additional references--is as follows: Strengths. 1. sou-west has successfully adopted a cost leaders strategy. ? Southwest maintains operational expenses per available shag mile at 15-20% below average. ? The social club has no baggage discourse, no meals, no central reservations, and no assigned seats. ? Because each(prenominal) of its planes are Boeing 737s, maintenance, turnaround, and rearing costs are contained. ? The company has embraced technology that will boil down costs (e.g. ticketless travel). 1. The company has a reputation for great customer service. ? Southwest won the Department of Transportations dual Crown 5 days consecutively for ontime service, baggage handling, and least(prenominal) number of customer complaints. \n? The company has stand out the National Airline Q uality range three years consecutively. 1. The company has a strong, fun-loving, employee-oriented culture. The companys mission teaching focuses on these aspects of the business. The termination is a leal employee base that is spontaneous to work grueling to achieve the companys goals. ? finish begins with strong leadership. chief operating officer Herb Kelleher is cognise for his relaxed management style. ? Southwest was voted one of the century Best Companies to exit For in the States by caboodle magazine. ? Southwest use programs to retain employees, including the early profit overlap plan in the industry and a 401k plan that matches contributions dollar for dollar. ? Although 84% of the work force is unionized, they share responsibilities (e.g. pilots handling baggage) and have m everyeable work schedules. ? Southwest shares information with all levels of employees so that they recognise the companys goals. \n