Southwest Case Analysis

Retaining let loose cost structure is the root issue for south-west Airlines. southwestern Airlines core competitive advantage was the ability to handle lower costs in their trading operations. Lower costs of operations in the southwest allowed them to offer lower fare prices, close 50 percent lower than its major competitors. With the time changes it wasnt very easy for Southwest Airlines to uphold this situation. Workers unions started to stand up and question round their wage increases. Fuel expenses are started to upgrade up every day. These factors directly affected the Southwests overall performances and its stock prices. Stock prices started to decline gradually. Still Southwest caution tried to economise their low cost outline even when the ac federation was growing rapidly and their external and infixed factors stand-in against them.
According to my analysis, Southwest management didnt overhear a long term plan to maintain their low cost strategy. Herb Kelleher the chief executive officer of Southwest was able to maintain a very strong kindred with workers. But the crude management didnt able to maintain it. With the growth of Southwest Airlines it reached to 35,000 of workers and its culture stated to get change. As the company growing management didnt able to control track on their workers and their needs.



That was a big fail for the company because the company and its workers used to maintain a great consanguinity between them for a very long time. Workers started to complain about staff shortage and their low wages. These incidents affect directly for the companys overall performance. With the fast growth, Southwest Airline management couldnt take the right actions to keep up with the growth. They stay workers to do more work than they usually do, which put them at risk of injury. Management should have hired more new workers as the company growing so the current workers wont be in any risk. Managers should have provided more benefits for its workers when company...If you want to get a full essay, order it on our website: Orderessay



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