Southwest Airlines Case Study Example | Topics and Well Written Essays - 750 words - 1

Southwest Airlines - Case Study Example The most impressive thing about SA is its low-cost offerings for all of its routes in the market. In spite of its low cost, its services were excellent and flights were on schedule. When its rivals assumed that SA will soon be out of business, the airline not only survived but also prospered and could multiply its fleets from three planes in 1971 to over 500 planes in 2010. It is the only career in the US to make consistent profits since 1973 due to its low operating cost and customer oriented services. Q. What grade would you give Southwest management for the job it has done in crafting the company’s strategy? What is it that you like or dislike about the strategy? Does Southwest have a winning strategy? Certainly, the company deserves a top grade for its winning strategies that include customer satisfaction and keeping operational costs as low as possible. No airline can offer such a low-fare on all its routes unless it knows how to reduce its operational cost without affecting customer services. It is commendable that almost 74 percent of SAs revenues are earned through bookings at its website saving a lot on booking agents (408). The company employed strategic thinking from the very beginning. For example, using Houston Hobby Airport instead of Houston Intercontinental Airport in 1972 was a strategic choice and its passenger traffic outlived the rival airlines almost immediately. It requires business acumen to cut fares from $26 to $13 in a single stroke in 1973 on its San Antonio-Dallas flights to ascertain that not a single seat goes unoccupied ever (395). When Kelleher, the CEO of SA stepped down in 2001, the company was firmly established earning revenues of $5.6 billion and over 30,000 employees on its payroll. Since its inception, the company continues to prosper and it is not a small feat that in these