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Southwest Airlines Case Study - Essay Example

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Southwest Airlines Case Study Name of the Writer Name of the Institution Southwest Airlines Case Study Executive Summary Southwest Airlines is a low cost domestic airline operating in 42 States of the USA for over 40 years with exemplary standards of service…
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Download file to see previous pages This has necessitated a review of its mission and vision statements that will form the basis of this paper. Introduction This paper will look at the mission statement, vision statement and values of Southwest Airlines, a local airline operating within the USA but now branching out regionally starting with Mexico and the Caribbean. I will analyze each of the above elements from the point of view of good strategic management principles, evaluating their efficacy and worth as exemplary factors or otherwise. I will also try to determine whether they truly reflect the body and soul of the business, and if not, make recommendations and changes in the above three elements so that they are worthy of good strategic management principles. Company's Mission Statement and Analysis Southwest Airlines believes in continuing to be the USA’s leading low cost airline, with commitment to the highest quality of customer service, delivered in the company spirit of warmth, friendliness and customer pride. Concentrating on the domestic sector, it flies to 92 destinations across 42 States of the USA. It is incorporated in Dallas Texas and operates more than 3300 flights a day. It is the USA’s largest domestic carrier. Looking at the mission statement for this airline, it is clear that they have defined their target market and reach in the USA. They are a domestic airline and want to keep it that way. What’s more, they want to lead the industry as a low cost competitor and are currently looking for ways to attract and solidify new groups of customers. A recent news release shows that they are tying up with hospitals, hotel chains and other businesses that have groups of customers or cargo that they can transport on a regular basis. This is an innovative approach that can bring them more business opportunities (Crosby, 1992). As far as the target market is concerned they have defined it as local customers. They do not want to enter the international sector, possibly due to added costs of fuel, distance travelled and taxation and other financial costs. Moreover they are already leaders in the domestic market so it would pay to stick to their strengths rather than take unnecessary risks. As regards the products and services that this airline offers, its main emphasis is on being cost effective. In Michael Porter’s terms it is using Low Cost Leadership as its chief strategy (Porter, 1980). It operates a point to point service- with recently acquired Air Trans used as a hub and spoke service. It also has a tie up with Volaris, Mexico’s second largest airline for regional routes outside the USA. It operates a modern fleet with Boeing 737-800s and 737-MAXs being part of its inventory. It operates three kinds of flights principally- I Wanna Fly, Business Select and Anytime Fares. Only the first fare is non-refundable but all of them can be applied towards future flights. They have also started a Rapid Rewards Program and Early Bird Check In to further appeal to customers- and expanded operations to the Caribbean and Mexico after the acquisition of Air Tran. This airline company has also managed to achieve some degree of backward and forward integration with airline booking agencies and hotels all over the USA and in Mexico and the Caribbean. It even has linkups with resorts and rental car agencies if the passengers want to use these facilities. All of them are available on its website and there are also various gifts, rewards and discount packages that make it beneficial for the customer ...Download file to see next pagesRead More
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