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Marketing - Essay Example

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has demonstrated a remarkable capability for maintaining profitability for over more than three decades, and that too in an industry that suffered the most, as a result of the September 11, 2001 incidents. The strategic initiatives of Southwest Airline Co…
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Download file to see previous pages Just low fares would not attract the required customer level, and so value for money is another objective of Southwest Airlines. So though the service offered is a no frills one, Southwest Airlines has targeted excellence in customer service to provide an extra boost to the value of the service. This has paid rich dividends, as can be seen from the accolades that Southwest Airlines has received consistently received, and is the only business enterprise in its sector of industry to do so. The Fortune magazine in its annual ratings has consistently placed Southwest Airlines among the most admired companies in the United States of America.
In essence it is the understanding, and utilization of the human asset in an organization that provides the capacity to an organization to maintain low cost levels in its operation. This factor of this strength of the human asset in Southwest Airlines enables it not just to maintain low cost levels, but also to meet the challenges that come with adverse times. Southwest Airlines has employee strength of approximately thirty-two thousand, and in keeping with the philosophy of their founder Kelleher, remain an asset that is accorded the highest priority. Kelleher believed that a high employee morale, reduces employee turnover, and that helps to maintain low costs. The employees of Southwest Airlines enjoy facilities of profit sharing and stock purchases, and are encouraged to make the working environment more pleasurable. The result of these actions could be seen in the aftermath of the September 2001, when the airline industry went through a crisis. The support of the employees enabled Southwest Airlines to be the only airline that did not cut the number of its flights and lay-off employees, and surprisingly offer lower fares too, despite the sharp drop in passenger traffic. By November of that year, while the airline industry reported a drop of sixteen percent in comparison to the previous year, ...Download file to see next pagesRead More
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