Sothwest Airlines

Southwest Airlines Case Analysis

.

Case Recap

Southwest was the eighth largest airline in the U.S. in 1994. They felt their success came because of their better quality plus and cheaper price. Another important factor that helped them succeed was their top of the line customer service. They created a warm atmosphere for customers while flying and employees enjoyed the “happy” atmosphere. Competition is always a factor in every business, United Airlines created a team to help them follow in the ways of Southwest airlines. They tried to copy their operation strategies, and looked at what flight patterns Southwest was succeeding in. Southwest will have to come up with innovated ideas to help them maintain their great reputation.

Problem Identification

A few major problems are facing Southwest today. In every business competitors are an issue for your company to become successful. United airlines have created a team nicknamed “U2” which is designed to replicate many operational ways that Southwest runs. This has had a great effect on the company, which was producing great numbers financially, and amount of flights flown up until now.

Root Problem Components

A group of United managers worked to create a team that can replicate the great ways Southwest was running their operation. They looked at the different areas that make Southwest the great airline people were saying they were. The first area that United focused on was lowering operational costs. This meant they had to get their current price of 10.5 cents to a low of 7.5 cents for its shuttle operation. This would be an issue for Southwest which prided their customers on their everyday low price. The price, was now not a draw to the airline anymore, causing a decrease in customers. Southwest is known for their quick turn around when flights landed. From when the plane reached the gate, till it was pushed back was scheduled for 20 min. Southwest completed this task in less...