1. American low-cost airline based in Dallas, Texas
2. Founded in 1967 as Air Southwest by Rollin King & Herb Kelleher to provide service in the state of Texas
3. Adopted its current name in 1971
4. Offers short haul, high frequency flights
with distinct service culture
Offers short haul, high frequency
flights with distinct service culture
American low-cost airline
based in Dallas, Texas
Founded in 1976 by
Rollin King & Herb
Kelleher
Original name was Air
Southwest, which was adopted
to South West Airlines in 1971
Problem Statement
How does Southwest Airlines remain
competitive among domestic airlines in the
USA?
STRENGTHS
Competitively priced tickets.
Strong relationship with airports.
Good relationship between
the stakeholders and
shareholder
Strongly represented and
reinforced company value and
culture
WEAKNESS
Lower Salaries
Do not receive many benefits
Little or no job security
Long working hours.
OPPORTUNITIES
Employees can be
given more chances to
work and perform as
contracts are flexible
for helping out low
staff turnover.
Employees can earn
more salary from the
profit-sharing plan
(compensation).
THREATS
Increase number of
low cost airlines
entering US
Increase corporate tax.
Change in security
system enforced by
the FBI, CIA etc. to
maintain its operating
system.
Difficult to enforce
competitive
layoffs/cutbacks
because it is one of
the most labour
unionized companies.
Work results may
not be up to
standards. example;
takeoff preparation
time may take longer
than what is required.
Work overload for
pilots & ground crew as
the pilots are unionised
independently and the
ground crew has less
members .
Recommendation
Operate as long haul flight
carrier. Use connecting flights
(interline tickets).
Strength
Long haul flights experience high load
factors and don't need additional staffing
which means more revenue for the
organisations.
Diversification can increase
Southwest;s competitiveness
and market share.
Weakness
Infastructure & operating structure is not
designed to accommodate long haul flight
demands.
Customers identify the
airline as inexpensive,
short haul flight carrier
Strong presence of existing
brands e.g. Delta, United Airways
Critical Reflection
is known to have low turnover rate, good working environment even though pay
and benefits are minimal. the company values their employees via giving them
freedom in their way of work allows the employees to enjoy themselves while
working. Future innovations should be implemented due to the hight and direct
companies such as improvement & rely more on technologies rather than
employees