Southwest Airlines Case Study

SOUTHWEST AIRLINES

The Mission: The mission of Southwest Airlines is dedication to the quality of Customer Service delivered with sense of warmth, friendliness, individual pride, and Company Sprit.

Strategic Objective: The continued delivery of flight services at a cost that is both reasonable to the consumer, and which allows for continued profits for our investors and our stakeholder, the employees of Southwest Airlines

Analysis of the External Environment: The focus that was used by the founders of Southwest Airlines was one of providing an alternative to a market which was controlled by a select few. The strategic plan or concept was to provide an inexpensive way for travelers, whether business or recreational, to fly from point “A” to point “B” with limited luxuries, as well as run a cost effect airline company. Thru environmental scanning, Southwest Airlines understood that their market goal was geared at those individuals that commuted between cities located in their startup state of Texas. Utilizing outlying airports as the primary facilities to launch the endeavor, Southwest was able to put their foot in the door per se (pardon the cliché). Southwest‘s utilization of competitive intelligence continues to assist with profitability and innovation. The bigger airline carrier’s monopoly of gates and terminals at larger airports led Southwest to pursue concessions from smaller regional airports thus eliminating costs that would have been associated with the larger venues ; coupled with the strategic market focus on travelers whom where seeking a no frills and a reliable punctual service, Southwest began to soar. Competitive Intelligence continues today as organizations throughout the airline industry compete for customers thru price wars and lifting of restrictions.

Porter’s Five-Forces: Southwest Airlines continues to lead the way with relatively inexpensive air travel. Their business model continues to be copied as larger airlines have come and gone...