Case Study Analysis: Southwest Airlines
Southwest Airlines, Originally Southwest Co. was conceived in 1968 by Rollin King and Herb Kelleher as a flight carrier to fly between 3 Texas cities. Southwest Airlines was started originally in Dallas, TX and is still headquartered there today. Although Southwest Airlines has had a small number of different executive officers, and presidents, none seem to have the universal impact and lasting influence of Herb Kelleher. It is under the organizational culture that Herb and his long time ally Colleen Barrett that Southwest Airlines has grown from the Modest three cites serviced to fifty eight American cites at the close of 2002 and currently services sixty two cities in thirty five states. Southwest Airlines growth is contributed by being a market leader in point to point; low cost, low frills air travel. Southwest, number four in large domestic air carrier's strategy has been to enter and maintain markets with numerous low cost daily flights.
This strategy has used successfully against the entire major air carriers and other competing low cost carriers. Southwest's growth was prominently in the south until the beginning of the 1980s where it began to branch out to cities nationwide. Southwest has been herald by holding a thirty year consecutive profitability rating as of 2002, the first employee profit sharing airline program in 1974 generating approximately 10% ownership of the common stock by the employees. Southwest also has earned numerous consumer awards for best services year after year, including the only major airline to win a Triple Crown by being first in all categories of service for an annual period. And was the only major airline to earn a profit after the terrorist attack on 9/11/01. Southwest Airlines has grown from a modest provider of air travel in Texas to one...