Sunday, February 15, 2009

Southwest Airlines

It is quite amazing what southwest airlines has done over the years. Having a rough start with companies tireless efforts to shut them out and hold them down, southwest airlines has overcome all competition and boundaries to make the most profitable airline ever. The company itself has a strong CEO with a good combination of dedicated people, which all are satisfied and happy. Many different efforts have been put forth for the ultimate success of southwest airlines. one key factor was that southwest never gave up. through hard times and good times, they remained calm and always made the right move. Also, every aspect of southwest airlines was just a little bit different from other competition, this I believe made them unique and innovative. As of today, southwest's competition is now following in SW's footsteps to create a similar approach to airline service.

At the beginning of southwest airlines' arise, they went through a lot of tough challenges. One of their competitors, continental airlines, created some of the main struggles that southwest airlines had to undergo. Continental kept southwest airlines out of the Dallas-Fort Worth airport, and kept southwest in a legal battle that almost shut them out right off the bat. On top of the issues with continental airlines, the wright amendment was aimed at stopping southwest by encouraging traffic through the new Dallas-Fort Worth airport.

One marketing strategy that southwest airlines had was the implementation of the "Make Love, Not War" theme. Southwest has been using a heart emblem on all of their aircraft, and using it as a typical symbol for advertising and corporate communications. This strategy I think means that southwest has a good relationship with people, the way they satisfy their customers and employees as a impact on some level of care for one another. The caring and building of good relationships I think has definitely been a key factor in the success of southwest airlines.

Another one of southwest's strategies was to use the same type of airplane in all areas of travel. This allows southwest to be somewhat "mass produced" and typical of all of their airplanes. The training for just one type of airplane is easier, and the employees can have a better understanding of the airplane that they use since it is typical. The pilots can also have a better understanding of the airplane itself, in turn making every flight safer. The aircraft that was chosen was also fuel-efficient and had a fast turnaround time. This made the cost for each flight cheaper, and the waiting time less.

A good approach to southwest's mission to get more customers, was the idea of competing with ground transportation. The idea of making the fly actually cheaper than the drive is actually a great approach in getting more customers. Its seems that southwest was the first to have people switch over to flying and actually making it cheaper, and more convenient. Besides waiting in line to get on the plane, there is no traffic in the sky, no stoplights, and the passengers can focus on something other than the actual drive.

Having a competitive advantage was one of southwest's strengths for success. Keeping the costs down significantly, I believe helped southwest get where they are today. A good breakdown showing this was the "cents per mile." In comparison to southwest's competition, their costs were about 20-30 percent lower. This cents per mile is a good breakdown for the analysis. Since it involves the cost of meals, gas, employees, etc. the "cents per mile" is a good thing to try and keep low and is a good measurement for comparison with other companies.

Leadership anywhere is an important for the creation of success. Southwest's leadership kills have contributed to a lot of their accomplishments. Southwest's CEO Herb Kelleher had a great drive for leadership. Without this drive, I believe that southwest would not be the company it is today. In order to be a leader, I think that making good relationships is key. This way everyone who works for you is happy, and in turn makes the customers happy, and eventually leads to success and growth.

The people department is a good way of changing the aspect of human resources. They actually changed the way human resources is from all other companies. I think that their people department should be a fundamental change in the way we organize human resources. The way they have their mission statement as the backbone of the people department is very important.

Recruiting is a very important aspect in making a successful company. The best part of a business is people, and in order to have a good business, recruiting is an essential part of growth. The idea of having a laid back crew is a good idea as well. This way there are no ego battles, and people can come to work relaxed and have fun. The big portion of creating a good work force is the actual training that employees go through. Southwest has actually set up a "University for People" program that teaches the newly hired employees the way southwest does business.

All in all, I believe that the most successful portion of southwest's company is the spirit that they portray to their customers and employees. The southwest spirit has many aspects including: customer service, hard work, equality, cost consciousness, dedication, fun, and family. This way everyone is happy working for southwest, working with southwest, and in turn constantly growing.

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