...The Airline Industry: A Strategic Overview of Southwest Airlines Terra Thompson Ohio Dominican University Running head: SOUTHWEST AIRLINES 1 The Airline Industry: A Strategic Overview of Southwest Airlines Terra Thompson Ohio Dominican University SOUTHWEST AIRLINES The Airline Industry: A Strategic Overview of Southwest Airlines Table of Contents 2 The History of Southwest Airlines ................................................................................................. 3 Target Market and Business Model ................................................................................................ 3 Current Product............................................................................................................................... 4 Southwest’s Culture ........................................................................................................................ 5 Mission Statement .......................................................................................................................... 5 Mission and Corporate Culture....................................................................................................... 6 Employees and the Mission ............................................................................................................ 7 The Importance of the Mission Statement and Corporate Vision................................................... 7 Strategic Analysis .................
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...Southwest Airlines Company: Customer Service Profile Misty Sanchez Westwood College DNS Two men, Rollin King and Herb Kelleher decide that it was time to start a different type of airline. The idea was simple. Good customer service amongst other factors would bring in customers and have them remain dedicated with the airlines. For Southwest, the main goal was to get passengers to their destinations, on time, for the lowest possible price. When on the flight, Southwest and its employees remain focused on making sure passengers are having a good time and are well taken care of. In 1989, Southwest Airlines hit the billion dollars in revenue mark. Southwest started with three Boeing 737 planes. They flew Between Houston, Dallas and San Antonio. Southwest has since hit 40 consecutive years of profitability. Southwest most recently purchased an airline based out of Orlando and plans to have the companies integrated by 2015. Like most companies, Southwest has a mission statement that guides the way they operate and do business as a company. The mission of Southwest Airlines is “dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit.” With that being said, it is easy to see that most of Southwest’s focus is on excellent customer service. (Southwest Airline Company, 2012) My definition of good customer service is simple. I appreciate...
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...Southwest Airlines Co. Analysis * Introduction and Mission Southwest Airlines Co. is a major U.S airline and the world's largest low-cost carrier. It was established in 1967 and adopted its current name in 1971. The airline operates more than 3,400 flights per day and has more than 46,000 employees as of August 2012. In 2013, Southwest Airlines has scheduled service to 84 destinations in 41 states and Puerto Rico. In 2012, Southwest Airlines was the market share leader in domestic air travel in the United States; it transported more passengers from U.S airports to U.S destinations than any other airline, and it offered more regularly scheduled domestic flights than any other airlines. For the 40th consecutive year, the Company was profitable, earning $421 million in net income. The mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit. The mission statement has always regulated the way the company conducts their business. The company mission statement also highlights their desire to serve customers better and it provides them with direction when they have to make certain service-related decisions. The company mission statement is also another way of saying, "We always try to do the right thing!" According to the U.S. Department of Transportation, Southwest Airlines has the best cumulative consumer satisfaction record. * Market Share These three...
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...Marketing Excellence Southwest Airlines Introduction Southwest Airlines Co. is the largest low-cost carrier in the United States, and is headquartered in Dallas, Texas. The airline was established in 1967, by Rollin King and Herb Kelleher. Southwest begins flying within the state of Texas (between Dallas, Houston, and San Antonio) with three Boeing 737 aircraft. Today Southwest operates nearly 400 Boeing 737 aircraft to 59 U.S. cities. Southwest has the lowest operating cost structure in the domestic airline industry and consistently offers the lowest and simplest fares. Southwest also has one of the best overall customer service records. Moreover, It is one of the few airlines with no layoffs aimed a travel slump created by the slow economy and the threat of terrorism. Southwest offers types of products and services which include; air transportation, mobile access, shuttle service, priority boarding, early bird check-in, and pet allowance. Southwest has pioneered in Senior Fares, a same-day air freight delivery service, Fun Fares, and Ticketless Travel. Southwest was the first airline with web page- southwest.com, DING! The first-ever direct link to Customer’s computer desktops that delivers live updates on ticket deals, and the first airline corporate blog. A timeline of key dates in Southwest Airlines history: 1971 - Southwest begins flying between Dallas, Houston, and San Antonio. The idea for the airline was hatched over drinks by San Antonio lawyer Herb Kelleher...
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...| | | [A service analysis of Southwest Airlines] | This document analyses the different aspects of service delivery by Southwest Airlines | Contents Introduction 3 Company culture 4 Competitor Analysis 4 Primary Adjunct Services 5 Secondary Adjunct Services 6 Customer Retention 6 Employee focus 7 Customer focus 8 Service model 9 Southwest Airlines Marketing Campaigns 10 Southwest Airlines Customers’ Stories 11 The Future 11 Introduction Southwest Airlines is America's largest low-fare carrier, serving more customers domestically than any other airline with a unique combination of low fares with no annoying fees, friendly Customer Service delivered by outstanding People, safe and reliable operations, and an extraordinary corporate Culture. They are headquartered in Dallas, Texas. The airline was established in 1967 and adopted its current name in 1971. The airline has 44,831 employees as of December 2013 and operates more than 3,400 flights per day. As of November 2014, Southwest Airlines has scheduled service to 93 destinations in 41 states, Puerto Rico and abroad. As of August 2012 Southwest is the largest operator of the 737 worldwide with over 550 in service, each averaging six flights per day. The reason for Southwest Airline's success is due to their low-cost model. The Southwest Airlines consists solely of Boeing 737s and offers only coach seats (there is no business or first class). Southwest Airlines also do not offer...
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...trained to analyze customer needs and carefully develop a strategy to market their goods/services in the economy. The field of marketing is fast becoming the most effective way for businesses to improve their overall performance to compete in today's global economy. Most successful companies have learned by trial and error that catering to needs of their customers, providing quality goods/services, and providing good customer service strengthens continued sales and profits. Marketing oriented companies are also customer oriented and take into account customer needs by focusing on creating goods and services that will outshine their competition. Conducting research is crucial when attempting to identify specific requirements of both existing and potential customers. Marketers maintain open lines of communication between a company and its customers to ensure the success of any marketing method. Over time, customers become loyal and will buy again-and-again as well as provide free word-of-mouth advertising undoubtedly resulting in increased profits. This paper will describe the four elements of the marketing mix (product, place, price, and promotion) and tell how each of the elements impacts an organization's marketing strategy and tactics. Southwest Airlines will be the organization used to describe the marketing mix in great detail. Let's begin by looking at the marketing mix. (Perreault, W.E., et al., 2004). Providing the correct marketing mix of goods/services can make the difference...
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...------------------------------------------------- Southwest Airlines Thousands of people travel by air; Southwest Airlines provides low-fare air transportation service among 58 cities in the United States. Although the industry suffered a major blow from the terrorist attack of September 11th, the company is still holding strong; while other airline companies are in debt. The information was majority gathered and analyzed from the Internet; sources such as "News Week," and "Wall Street Journal." According to the acquired knowledge of Southwest, the company maintains steady sales. The major success to their continued success is due to their low-cost model and competitors are aware that they cannot match Southwest Airlines low prices therefore, by dropping the price even lower; Southwest Airlines can force a company to go bankrupt. Introduction In 1971, Rollin King and Herb Kelleher started an airline service with one simple notion: "If you get your passengers to their destinations when they want to get there, on time, at the lowest possible fares, and make darn sure they have a good time doing it, people will fly your airline." They were right about that. Southwest Airline is now a major airline, in fact, the fourth largest airliner in the United States that is trading under the Symbol LUV on NYSE. The mission of Southwest Airlines is dedication to the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride, and company spirit...
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...vision, mission, core values, and goals of the company. This paper will focus on the mission, vision, and value of Southwest Airlines Company. For many years, Southwest has managed to create a positive relationship with its customers by fulfilling its vision, mission, and values. These key elements make up Southwest Airline Company Philosophy. Philosophy Southwest Airline Co has a philosophy that focuses on delivering exceptional customer care through the attitudes of their employees rather than relying on one’s job experience (Campbell, 2010). Through their philosophy, attitude is most important because it develops a good relationship with the customers who continually retain them to accommodate their personal or work need for traveling. Because of Southwest Airline Co. philosophy, they have earned the top spot for the last four years in a row of providing customer services. Also, Bruce Temkins stated that “Southwest does a great job with customer experience and continue to set the bar for airlines” (McFadden, 2014). Therefore, the results of the rankings prove that they have kept their philosophy. Mission The direction of Southwest Airline mission is to provide their customers with the best customer service through a sense of individual pride, friendliness, warmth, and company spirit (Southwest, 2015). The company’s ultimate goal as a team is to meet the customers’ expectations the...
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...Southwest Airlines Operations – A Strategic Perspective September 1, 2014 by Airline Editor Southwest Airlines Operations – A Strategic Perspective By Mukund Srinivasan Background: Southwest Airlines is the largest airline measured by number of passengers carried each year within the United States. It is also known as a ‘discount airline’ compared with its large rivals in the industry. Rollin King and Herb Kelleher founded Southwest Airlines on June 18, 1971. Its first flights were from Love Field in Dallas to Houston and San Antonio, short hops with no-frills service and a simple fare structure. The airline began with one simple strategy: “If you get your passengers to their destinations when they want to get there, on time, at the lowest possible fares, and make darn sure they have a good time doing it, people will fly your airline.” This approach has been the key to Southwest’s success. Currently, Southwest serves about 60 cities (in 31 states) with 71 million total passengers carried (in 2004) and with a total operating revenue of $6.5 billion. Southwest is traded publicly under the symbol “LUV” on NYSE. Facts: * The first major airline to fly a single type of aircraft (Boeing 737s) * The first major airline to offer ticketless travel system wide including a frequent flier program based on number of trips and not number of miles flown. * The first airline to offer a profit-sharing program to its Employees (instituted in 1973). * The first major airline to develop...
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...missions, responsibilities, and services to their communities. When it comes to providing these services, each organization abides by certain plans and rules to develop efficient strategies. When an organization is executing a new project, these strategies will then be implemented. When organizations like Southwest Airlines implements the organizing function of management, the organization will include many resources to assist in their organization. These resources are monetary assets, physical assets, technology and human resources. This paper will discuss the evaluation of the organizing functions of management that are related to the resources discussed above. These organizational resources will be evaluated in reference to Southwest Airlines and whether or not Southwest Airlines has maximized these organizational resources for efficiency within the company. Southwest Airlines has an amazing staff. This is a great example of one of the physical assets that attract and maintain customers. The staff follows the “Live the Southwest Way” by applying the warrior spirit, servant’s heart, and the fun-loving attitude (Southwest Airlines, 2010). The warrior spirit is demonstrated by the employees by working hard and showing the desire to be the best worker possible. The servant’s heart is displayed when the employee follows the Golden Rule The Golden Rule is defined by treating others the way you would like to be treated, treat other co-workers and customers with respect, putting other...
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...Southwest Airlines SWOT Analysis Beresford Doherty February 16, 2009 The Mission Statement 1 The mission statement of Southwest Airlines declares that it is "dedicated to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit." And to its employees, Southwest Airlines pledges a commitment "to provide our Employees a stable work environment with equal opportunity to learn and for personal growth. Creativity and innovation are encouraged for improving the effectiveness of Southwest Airlines. Above all, Employees will be provided the same concern, respect, and caring attitude with the organization that they are expected to share externally with every Southwest Customer" [1]. Southwest Airlines is a principal supplier of air transportation in the United States for the conveyance of passengers for business and leisure purposes. In accordance with its mission statement, Southwest Airlines has recognized the importance of customer service and has trained its employees to conform, in accordance with responsible awareness of their customers and their needs. Southwest Airlines Co is arguable the most efficient, best performing domestic airline in the United States today. Based on 3 criteria’s from the Federal Aviation Administration (FAA) they are the enforcement of regulations and standards related to the manufacture, operation, certification and maintenance of aircraft. Southwest...
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...Abstract Southwest Airlines has a one of a kind culture primarily based on customer service. Southwest Airlines dedication to happy employees has been the platform for their success. Like any organization, communication is essential to keep employees and customers informed and united. Southwest Airlines has numerous forms of both internal and external communication such as newsletters, customer interaction software, and much more. Southwest Airlines adopted values most definitely align with their enacted value, which they call their formula for success; a happy employee equals a happy customer (Southwest Airlines, 2013). Southwest Airlines is one of the nation’s leaders in customer service, and it roots from the culture of the organization. Southwest Airlines vision is to grow by doing it conservatively. They want to capitalize and cut back on schedules for other airlines which will result in a long-haul success. Their mission statement is to provide the highest level of customer service with friendliness and company spirit. From the very beginning, Southwest Airlines motto was to give everyday people a chance to fly and their low-cost fares definitely support their values. Southwest Airlines biggest dedication is to their employees. They continuously provide employees with a steady work environment with equal opportunities for learning and advancements. They encourage employee’s voice his or her opinions and new ideas they may have for improvement. To Southwest Airlines, employees...
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...Southwest Airlines: In a Different World - Team 3 1.) Why has Southwest Airlines been more successful than its competitors? Herb Kelleher and Rollin King established Southwest Airlines in 1967. For the first few years, Southwest Airlines battled illegal lawsuits from larger airlines that did not want Southwest to enter the market. After many years in the courts Southwest Airlines was able to offer flights to customers. Starting a new company with large expenses is not an easy task. Southwest Airlines had to find a way to stand out to customers so they could sell their airline tickets. In the beginning Southwest offered a low fair price to fly. One of their promotions was a one-way fare for only $20. Southwest wanted to expand their flights to more cities and needed more revenue. In order to increase their prices and not lose customers, Southwest promoted free alcoholic beverages with airfare. Many customers had no problem paying more for flights and Southwest expanded. Southwest did not charge for additional luggage, which helped out those who had an abundance of luggage on trips – giving them an advantage and separating them from other airlines. Southwest also used many promotional schemes to attract new customers. One of them was “long legs and short skirts” for stewardesses on board the flights. The same person who hired hostesses for Hugh Hefner’s Playboy jet hired many of Southwest Airlines stewardesses. Southwest has always hired interesting employees with...
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...strength that Southwest Airlines has is its financial stability. As known in the US airline industry, Southwest is one of those airlines who are consistently earning profits despite the problems the industry is facing. With such stability, the corporation is able to make decisions and adjust policies, which other heavily burdened airlines may not be able to imitate. Having a low amount of cost in their operations is one of the contributing factors in Southwest Airlines’ financial success. Such low cost model of the corporation is brought about by an effective strategy. Southwest uses only one type of aircraft – the fuel-efficient Boeing 737. This tactic keeps training and maintenance costs down. Moreover, the no-frills approach to customer service contributed to the low cost of operations for Southwest. The airline does not serve meals on board, and there are no luxurious or first class seats offered. Services like these have been seen by the airline as unnecessary for an airline that provides a short-haul trip from city to city. By these, Southwest were able to offer low price tickets to customers, which was good for the company because most people would prefer to fly without those services mentioned if it meant for cheaper ticket price. Even though Southwest offers no-frills, there is still a high degree of customer satisfaction that continuously builds customer loyalty for the company. As mentioned, Southwest offers low prices on their airplane tickets. Also, Southwest is renowned...
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...Economic Analysis of Southwest Airlines Facilitator: James Young MGT: 513 Managerial Economics October 14,2012 Economic Analysis of Southwest Airlines History of Southwest Airlines History and Key Defining Moments Southwest Airlines was founded in 1966 when a group of Texas investors pooled together 560,000 to form the Air Southwest Company, incorporated in 1967 the company was envisioned as a commuter airline serving the cities of Texas, Dallas, Houston and San Antonio. Although the Texas Aeronautics Commission (TAC), the body responsible for overseeing aviation within the state granted the company permission to fly the routes requested in February 1968, three competing airlines filed suits to prevent the airlines form getting off the ground. An attorney, who stake in the company was a mere 20,000, took the case all the way to the U.S. Supreme court and in December 1970 this court ruled in the favor of Air Southwest. Early in 1971, Air Southwest changed its name to Southwest Airlines, the fledgling airline began operations on June 18, 1971 under the stewardship of President M. Lamar Muse, the airline offered six daily roundtrip flights between Dallas and San Antonio, and twelve daily roundtrip flights between Dallas and Houston. The start of service in June 1971 was accomplished with three 737-200 aircrafts that had been obtained from Boeing on favorable terms, and a fourth aircraft was obtained in September of 1971. The rest of 1971 and 1972 saw operating...
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