Topic > Southwest Airlines: A Case Analysis - 1537

Southwest Airlines: A Case AnalysisORGANIZATIONAL ANALYSISIt is evident that Southwest Airlines' greatest strength is its financial stability. As known in the US airline industry, Southwest is one of those airlines that consistently earns profits despite the problems the industry is facing. With such stability, the company is able to make decisions and adjust policies, which other heavily burdened airlines may not be able to imitate. Having low costs in their operations is one of the factors that contribute to the financial success of Southwest Airlines. This low-cost business model is the result of an effective strategy. Southwest uses only one type of aircraft: the fuel-efficient Boeing 737. This tactic keeps training and maintenance costs low. Additionally, the simple approach to customer service has contributed to the low cost of operations for Southwest. The airline does not serve meals on board and does not offer luxury or first class seats. Services such as these were deemed unnecessary by the airline for an airline providing short-haul travel from one city to another. By doing this, Southwest was able to offer low-priced tickets to customers, which was good for the company because most people would prefer to fly without the mentioned amenities if it meant a cheaper ticket price. Even though Southwest offers no frills, there is still a high degree of customer satisfaction that continually builds customer loyalty for the company. As mentioned, Southwest offers low prices on airline tickets. Additionally, Southwest is renowned in the airline industry for its short arrival and departure turnaround times. And since people's biggest concern nowadays is money and time, having cheap airline tickets to meet their travel needs in a shorter period of time will definitely satisfy them. Furthermore, aside from the low prices offered, what attracts customers is the way Southwest treats them. The airline employees treat their customers well and really listen to their needs. Southwest Airlines is also known for having a very productive and loyal workforce. Such loyalty and productivity among employees is due to the way Southwest management treats them. As they say, employees are willing to work hard for the company because they feel appreciated by the top management. Southwest maintains good relationships with employees because what it believes is that if employees are happy, satisfied, dedicated and energetic, they will truly care about customers.