Southwest Airlines Case Study Essay Example | Topics and Well Written Essays - 1500 words

Southwest Airlines Case Study - Essay ExampleThis has necessitated a review of its mission and vision statements that will form the basis of this paper. entranceway This paper will look at the mission statement, vision statement and values of Southwest Airlines, a local airline operating within the regular army but now branching out regionally starting with Mexico and the Caribbean. I will analyze each of the above elements from the point of view of good strategical management principles, evaluating their efficacy and worth as exemplary factors or otherwise. I will also try to determine whether they truly reflect the body and psyche of the business, and if not, make recommendations and changes in the above three elements so that they are worthy of good strategic management principles. Companys Mission Statement and Analysis Southwest Airlines believes in continuing to be the USAs leading low cost airline, with commitment to the highest quality of node service, delivered in the c ompany spirit of warmth, friendliness and customer pride. Concentrating on the domestic sector, it flies to 92 destinations across 42 States of the USA. It is incorporated in Dallas Texas and operates more than 3300 flights a day. It is the USAs largest domestic carrier. Looking at the mission statement for this airline, it is clear that they have defined their target market and reach in the USA. They are a domestic airline and call for to sustentation it that way. Whats more, they want to lead the industry as a low cost competitor and are currently looking for ways to attract and solidify new groups of customers. A recent news release shows that they are tying up with hospitals, hotel chains and other businesses that have groups of customers or cargo that they can channelize on a regular basis. This is an innovative approach that can bring them more business opportunities (Crosby, 1992). As far as the target market is refer they have defined it as local customers. They do not w ant to enter the international sector, possibly due to added costs of fuel, distance travelled and receipts and other financial costs. Moreover they are already leaders in the domestic market so it would pay to stick to their strengths rather than take uncalled-for risks. As regards the products and services that this airline offers, its main emphasis is on being cost effective. In Michael Porters terms it is using Low personify Leadership as its chief strategy (Porter, 1980). It operates a point to point service- with recently acquired Air Trans used as a hub and spoke service. It also has a tie up with Volaris, Mexicos second largest airline for regional routes outside the USA. It operates a modern fleet with Boeing 737-800s and 737-MAXs being part of its inventory. It operates three kinds of flights principally- I Wanna Fly, railway line Select and Anytime Fares. Only the first fare is non-refundable but all of them can be applied towards future flights. They have also starte d a Rapid Rewards plan and Early Bird Check In to further appeal to customers- and expanded operations to the Caribbean and Mexico after the acquisition of Air Tran. This airline company has also managed to make some degree of backward and forward integration with airline booking agencies and hotels all over the USA and in Mexico and the Caribbean. It even has linkups with resorts and rental car agencies if the passengers want to use these facilities. All of them are available on its website and there are also various gifts, rewards and discount packages that make it beneficial for the customer