Southwest Airlines Case Analysis Essay

2107 Words Mar 6th, 2013 9 Pages


This case analysis looks at Southwest Airlines and how the company is in a vital financial position. The analysis was done using news articles, the company’s website and finance websites. The research was used to focus on how they have a strong employee to company relationship and customer to company relationships that they do not want to jeopardize and ruin but they need to bring forth $100 million without laying off employees and losing customers due to raising fare prices. This analysis shows how Southwest is looking into new ideas that will enhance the brand and in the long run make them successful.

Executive Summary
Rollin King and Herbert D. Kellher
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In addition to fuel costs, labor costs are an extensive concern for Southwest. Labor costs have gone up more than 10 percent compared to the same time last year. Southwest’s success is leading its union workers to demand more generous compensation packages. “We are committed to provide our employees a stable work environment with equal opportunity…Employees will be provided the same concern, respect and caring attitude within the organization that they are expected to share externally with every Southwest Customer” is the mission to Southwest employees. Because of their mission, Southwest has always maintained good relationships with its employees, and this may help convince their employees to help the company maintain low cost advantage.
In the travel industry, the company that satisfies the customer will grow and be profitable. Southwest was ranked top in customer service last year by the International business awards and Consumer Reports honored them as being best for customer service in May of 2011. Southwest is confident that they can fix their financial problems and not lose customers or employees.
Suggestions for a Successful Change
Southwest is in a challenging situation but can easily be remedied with a number of recommendations. It is acrimonious to compete between airlines because of all the similarities between companies but

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