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Southwest airlines culture values and operating practices case study

Flexible Policies

Share Southwest Airlines LUV has become known over the past two decades as a thriving airline company operating in a time when most airlines have been struggling. Whether it is due to fluctuating demand based on the luxury service or due to rising oil pricesa company operating in the airline industry must maintain and strengthen a set of competitive advantages that differentiates it from its competitors.

Through this sound strategy, Southwest has achieved multiple competitive advantages that have allowed it to stay relevant in the face of an evolving landscape.

The Right Recruits While Southwest Airlines' entire business model is important, arguably the most valuable competitive advantage has been is its deep focus on hiring the right people.

How Is Southwest Different From Other Airlines?

Southwest prides itself on being a people-oriented airline that operates with friendly and approachable employees and team members. Per its business model, Southwest hires employees who embody the company's brand messaging and who have a passion for helping customers.

To ensure the right mix of team members, Southwest has stringent hiring practices and policies. Southwest Airlines has a business-oriented focus on the customer's experience. Part of that customer experience comes from the attitude and helpfulness of the employees it hires, but there are many more factors that go into this competitive advantage.

  1. Case Questions Building core competencies and competitive capabilities is essential for organizational success.
  2. The introduction of performers in the company to serve diverse customers enabled the company to outdo their competitors. Case Questions Building core competencies and competitive capabilities is essential for organizational success.
  3. This action is crucial in implementing the strategic decisions of the company because it is descriptive, empirical and considers a decision making process similar to a problem solving process. To ensure the right mix of team members, Southwest has stringent hiring practices and policies.
  4. Corporate culture at Southwest airlines and the way it leverages culture to achieve a competitive advantage Southwest is well known for passion and culture that attracts customers.

Flexible Policies To ensure its customers have an enjoyable experience, Southwest Airlines has set various policies and procedures that make flying with the airline easy. One of these is Southwest's cancellation policy, which allows a customer to cancel a reservation up to 30 minutes prior to the flight's departure, and the funds from the cancellation are available for a future flight. Policies like this one ensure that Southwest Airlines' customers remain satisfied with their experience — even if they have to cancel their flights — and it also helps the airline to build high levels of brand loyalty.

Rewards and Pricing Southwest Airlines also has one of the better rewards programs in the industry. Southwest offers points for purchasing flights that customers can use to purchase future flights. It also has a partnership with Chase Bank and offers customers a Southwest credit card that allows them to accumulate points that they can redeem for future flights.

  • Whether it is due to fluctuating demand based on the luxury service or due to rising oil prices , a company operating in the airline industry must maintain and strengthen a set of competitive advantages that differentiates it from its competitors;
  • A leader should create a better environment in order to allow customers make their own decisions and undertake their own efforts incase the decision-formulated does not work;
  • It maintains its culture through employing top performers who lend themselves for reasons;
  • Thus, the company would consider this action as the essential requirement in formulating their strategic decisions that would be well appreciated across the company and by all customers;
  • Whether it is due to fluctuating demand based on the luxury service or due to rising oil prices , a company operating in the airline industry must maintain and strengthen a set of competitive advantages that differentiates it from its competitors.

Keeping the customer happy is a great competitive advantage for Southwest Airlines. In addition to motivated employees and great customer serviceSouthwest Airlines also offers the one of the lowest-priced solutions for air travel.

  • For assistance with analyzing any financial data in this case, Table 4-1 Key Financial Ratios;
  • That has been a very powerful competitive weapon for us;
  • In addition, they decided to introduce colorful hot pants with high-heeled boots for each flight hostesses;
  • Support your answer citing evidence from the case;
  • How has or could Southwest Airlines put that process to work in support of their business strategies and objectives?

To be able to offer low prices, Southwest had to build its business model around low operating costs. It only has a few types of aircraft that don't include amenities such as in-flight movies, which helps the airline reduce its costs. It also services smaller airports that don't cost as much.

If a customer can find a lower-priced ticket, Southwest Airlines matches the price. Keep Looking to Improve Southwest Airlines has a track record for being very forward thinking, boosted by a flexible business model that supports rapid change. Keeping the end in mind, Southwest recently acquired AirTran, which has helped it gain market share and expand its services.

Southwest always tries to upgrade its fleet of airplanes, looking for lower-cost solutions that can also add more capacity, which will increase its revenue and profit potential. All in all, it's Southwest Airlines' competitive advantages gained through its flexible business model that differentiate it from other airlines.

  • Southwest Airline Company encouraged its employees to work as a team and help each other where necessary;
  • All in all, it's Southwest Airlines' competitive advantages gained through its flexible business model that differentiate it from other airlines;
  • Corporate culture at Southwest airlines and the way it leverages culture to achieve a competitive advantage Southwest is well known for passion and culture that attracts customers;
  • Their culture is focused on innovation, mentoring and technological advancement to progress on its performance Hamel, 2007;
  • This organization incorporated various key areas in order to increase its profitability in the organization and enable the company to operate smoothly in the organization.

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