Southwest Airlines : Major Challenges Essay

779 Words Sep 27th, 2016 4 Pages
Major Challenges
The leadership of Southwest Airlines has been under increasing pressure for a growing number of reasons in more recent years. These include emerging startups offering both cost efficiency and customized passenger experience and growing competition from established players as a result of a number of merges and acquisitions which have only enhanced operational excellence, expanded markets and driven costs down. Not unconnected to a changing airline industry landscape, Southwest faces a major corporate culture challenge caused primarily by company 's more recent acquisitions which have led to internal management issues of integrating disparate corporate cultures (of parent and acquired entities) and, not least, to maintain a corporate culture Southwest Airlines has long been known for.
Left unaddressed, mentioned challenges are more likely to impact Southwest Airlines performance over long range in negative ways. By erasing company 's most important competitive advantage, i.e. cost effectiveness, mentioned challenges are most likely to edge Southwest Airlines further away from her historical leadership position into one experienced by similar major carriers upon growth in markets and/or business partnerships. Put differently, by continuing to grow into national and international markets and to acquire more airlines and form new partnerships, Southwest Airlines may not stand up to her historical commitment of not growing beyond means and would only degenerate…

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