CASE STUDY
, Overview
• Company History
• Industry Profile
• Competitive Advantages
• Future Challenges
• Recommendations
, Southwest Airlines History
• Founded in Texas in 1971 as a small regional airline
• Mission – “Dedication to the highest quality of
Customer Service delivered with a sense of warmth,
friendliness, individual price, and Company Spirit.”
• 31 consecutive profitable years and consistently high
quality ratings
– Fewest customer complaints for the 13th straight year in
2003
– Multiple Triple Crown winner in U.S. DOT rankings
• Today Southwest is the largest airline in the United
States
, Industry Profile
• Southwest competes in the domestic airline
market
• Legacy carriers – United, Delta, US Airways,
Continental
• Low Cost Carriers – Southwest, JetBlue, AirTran
Airways, Frontier Airlines
• Hub and spoke vs. spider web
• Difficult financial time for the industry
– Rising fuel costs, economic downturn, post 911 fallout
, Overview
• Company History
• Industry Profile
• Competitive Advantages
• Future Challenges
• Recommendations
, Southwest Airlines History
• Founded in Texas in 1971 as a small regional airline
• Mission – “Dedication to the highest quality of
Customer Service delivered with a sense of warmth,
friendliness, individual price, and Company Spirit.”
• 31 consecutive profitable years and consistently high
quality ratings
– Fewest customer complaints for the 13th straight year in
2003
– Multiple Triple Crown winner in U.S. DOT rankings
• Today Southwest is the largest airline in the United
States
, Industry Profile
• Southwest competes in the domestic airline
market
• Legacy carriers – United, Delta, US Airways,
Continental
• Low Cost Carriers – Southwest, JetBlue, AirTran
Airways, Frontier Airlines
• Hub and spoke vs. spider web
• Difficult financial time for the industry
– Rising fuel costs, economic downturn, post 911 fallout
