Product details

Southwest Airlines, the largest domestic passenger airline with the highest market capitalisation in the US airline industry, has been the only airline in American history to have recorded profits for 32 consecutive years since its inception in 1971. Southwest relied on a unique business model of low cost, - no frills - high customer service and leveraged its human resources effectively to achieve extraordinary success. Southwest had been in the top ten list of FORTUNE''s Most Admired Companies every year since 1998. Southwest had sustained the success and its position even when the whole airline industry plunged into losses after the 9/11 terrorist attacks and also withstood the competition from a horde of airlines, which tried to replicate its strategies and business model. But since 2002, Southwest also had been caught up with the general troubles associated with the other airlines - higher cost structure, changing consumer attitude, infrastructure bottlenecks, and changing corporate culture. The case helps in understanding the evolution of Southwest into the most successful airline in American history, its business model, its strategic and competitive advantages, its founder Herb Kelleher''s leadership, and its stress on employee empowerment for achieving success in an extremely competitive industry. The case also provides insights into the changing cost structure and corporate culture of Southwest and offers scope to discuss whether Southwest is losing its highly acclaimed strategic advantages and industry leadership position. A structured assignment ''305-139-4'' is available to accompany this case.