Southwest Case
Essay by remdtime • March 8, 2014 • Essay • 797 Words (4 Pages) • 1,056 Views
Southwest leadership has played a vital role in the success of the airline. Southwest has been in business for 43 years, 40 years of the operations have been profitable for the company. CEO Gary Kelly strives for perfection in the industry. Kelly's vision is to become the world's most loved, most flown, and most profitable airline in the industry. Leadership and Management personnel have strived for customer satisfaction. This success has resulted, in gaining trusts of consumers, developing a returning market of satisfied customers, and taking customers away from their competitors.Southwest leadership has played a vital role in the success of the airline. Southwest has been in business for 43 years, 40 years of the operations have been profitable for the company. CEO Gary Kelly strives for perfection in the industry. Kelly's vision is to become the world's most loved, most flown, and most profitable airline in the industry. Leadership and Management personnel have strived for customer satisfaction. This success has resulted, in gaining trusts of consumers, developing a returning market of satisfied customers, and taking customers away from their competitors.
Southwest refined its vision and purpose despite posting 40 consecutive years of profitability. This philosophy--never being satisfied with the status quo--traces its origin to Southwest founder Herb Kelleher (Gallo, 2014).
When the airline industry announced they would be charging for checked in baggage, Southwest went against the industry and announced publically to consumers, no baggage fees will apply for your first two checked bags. Southwest has stood by this action for seven years and remained profitable.
After the successful launching of bags fly for free Southwest announced another change to the industry. They introduced open seating. This new concept allowed the consumer to sit wherever they choose. Their flights do not have first class or business seating. To keep cost down the CEO would have to personally approve purchase that would cost $1.000 or more. This conscious decision assisted in wasting money on unnecessary purchases. For years consumers could not purchase tickets on sight such as orbitz or travel velocity for Southwest airlines. These additional sights charge consumers and business for purchasing airline tickets. These management ideas listed above have made Southwest one of the most enjoyable and profitable airline industries in the United States.
Airline companies such as Delta, Northwest and United have had to deal with plummeting stock prices, bankruptcy, and bailouts from the government to stay in business. Delta, Northwest and United airlines are trying to capture new changes that will launch them in front with Southwest airlines. The major difference between Southwest and the other airlines is the success of new ideas and staying focused on the company's values.
Southwest has concentrated on cost reduction, awarding customers with price reductions flights and keeping their employees employed for 40 plus years without layoffs or furloughs.
Southwest takes service beyond just providing air transportation from one destination to another. A priority of the company, customer
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