Global Southwest Airline Analysis

Global Southwest Airline Analysis

Introduction

Southwest Airline is one of the largest Carriers in United States. It was created in 1966 by Rolling King and Herb Kelleher, with a dream to start a low cost, fare Airline. The Airline started with a mission, which still lives on today, “If you get your passengers to their destination when they want to get there, on time, at the lowest possible fares, and make sure they have a good time doing it people will fly your Airline”. The Airline did even more than that, it paved its way to become one of the top Airlines in US. The story of Southwest Airlines starts from being 'Being Different' to 'Being Best' (SWA, 1988).

The key to success in the market of Airline was not only low price, however, the market visibility. Despite the early failures and challenges, the company's personnel never gave up and continued with high morale and enthusiasm, which eventually helped it in becoming a successful company in the US airline industry.

The purpose of this paper is to analyze the management and marketing strategy of southwest airline. It will discuss the core values of the company and its culture. The main focus will be general environmental trends of airline.

Discussion

It is quite notable that SWA, have minimum load factor with the highest profit margins. It is because of the fact that, Southwest adopted the strategy to keep the cost low as much as possible. In this essay, the general environmental factors in relevance to Southwest Airline are being discussed.

General Environmental Trends

Demographic

Though the percentage of expected population for next seven years is approximately 7%, however, it will change the makeup of United States dramatically. The frequent flyers in US are between the age group 40-63, with married, own their home, with no children, having ...