SOUTHWEST AIRLINES: IS LUV SOARING OR SOUR? Harvard Case Solution & Analysis

SOUTHWEST AIRLINES: IS LUV SOARING OR SOUR?     Case solution

Southwest Internal Communication

The priority should be to treat the passengers as best as they can because they increase the number of flyers therefore, liquidity would increase if there are more flyers. On top of that,the management should have to come forward to work in a team and this will give motivation to the employees and this would lead to the growth of the company. The SWA offer slow cost services, which helps its financial team to make a better capital structure of the company.

The strength of any organization highly depends on the company’s vision statement, and this will lead the organization to maintain its credibility and growth in today’s world. Mr. Herb was an entrepreneur who introduced the business model in a unique way by introducing the term Conceptualization, which is the ability to stick with the idea he believed upon, along with the creativity to deal with the intricacies of the organization in order to meet its long term goals. Mr. Herb had strong faith and trust towards the employees with passionate, devoted and dedicated skills in order to cope up with the hurdles, and he believed on doing the things differently and exclusively.

Problem Statement

The Southwest Airline had faced a lot of problems since its inception.
1. The competitors maintain the same USP as Southwest which is based on low fare segments.Moreover, they tried to provide their customers with more attractive services.
2. As the company grew with the passage of time, therefore increasing number of employees became a challenge to maintain the culture of the company.

Analysis

The motive of Southwest was to hire the employees with greater attitude and diversified training skills. The major problem of Southwest was limited facilitation offered in terms of the geographical market because they are bound in major cities of the U.S. The strategy taken by Southwest was beneficial in terms of taking initiatives in the market and it is focused on the small or grass root level and supports the overall success of the business.

Since Southwest gained their goodwill and is already well-known in the market therefore,the competitors have an advantage in copying the strategy of the company by bringing some changes to it, therefore this would assist them to lead in the Airline industry. The low price offered by the competitors and implementing the quality and service to their customers would make Southwest Airlines’ limitation more obvious.
In the beginning, the number of employees was not so large therefore,Colleen Barrette reached to all employees and wished them on their birthday and greeted with birthday cards however,during the company’s growth stage when 35000 employees dispersed in different cities of U.S as a result it became difficult for the upper management to interact directly. It was a difficult task to keep them together or in the same platform and it had become one of the most difficult barriers for Southwest.

Others competitors also gave services like leather seat and in-flight entertainment with the same fare as Southwest. Southwest was using the old strategy and took delay to come up with different and unique strategy therefore, this gave leverage to the airline industry in accumulating the data and analyzing it with better solution as it took more time in bringing new offers to cater its customers...............

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