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Southwest Airlines - Case Study Example

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Summary
Southwest Airline is one of the most popular low cost American domestic airline that has been able to sustain its profitability through the turbulent phase when rest of the important airlines like Pan Am, Eastern etc. were struggling to survive. After deregulation in 1978, the…
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Southwest Airlines
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Southwest Airlines

Download file to see previous pages... In 1992, 10% of stocks of the company were owned by employees. It encourages union membership with management having good relationship with the labor union, thereby avoiding any loss of mandays through strike or lockups. The organizational culture of company thrives on excellent teamwork that promotes collective decision making and shared learning. Being part of profit sharing encourages concept of ‘big family’ significantly forges personal bond with the company that reflects in their committed work and improved productive outcome.
Continuous improvement and innovation in customer service is the hallmark of the airlines. The employees and staff are empowered to make decisions regarding the welfare of the customer on and off the flight. The company’s strategy was to increase the number of customer service agents so that the passengers could get improved personal service and emotional support and security at the time of crisis. Grant (2007) says that analysis and identification of the changing preferences of the customer are important ingredients to gain leverage against their rivals (Grant, 2007). Southwest has been focused in its customer service and makes continuous efforts to update its products line with that of the changing public requirements. Company’s stock ticker symbol is fittingly chosen as ‘LUV’! Indeed, the company has been innovative in its new plans and features to meet the challenges of time.
While the management follows stringent regulations and strict time schedules, it has, at the same time, empowered its workforce to make decisions based on informed choices. Southwest prefers destination to destination flights which is preferred by customers and therefore is more popular. Its low cost strategy has been successful because of its exemplary customer service, security features and specialized short haul flights. The high ...Download file to see next pagesRead More
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