Since the 1960’s, Southwest Airlines has been intensively competing to provide exceptional customer service and a stable work environment, while offering low airlines fares. On March 15, 1967, Air Southwest Co. was incorporated and in 1971 the airline changed its name to what is known today as Southwest Airlines. Herb Kelleher and Rollin King entered a highly competitive industry in the state of Texas, thus prompting three other airlines to file a temporary restraining order against Air Southwest from receiving the certificate of public convenience and necessity form the Texas Aeronautics Commission. Even though Southwest Airlines incurred net losses in the 1970’s, Herb was not deterred from continuing services in such competitive environment. It has been more than 38 years and Southwest Airlines mission remains the same – “The ...view middle of the document...
This speedy service prompts many travelers to choose Southwest Airlines over other competitors. While many other airlines charge for Check-In baggage, Southwest Airlines allows two Check-In pieces of baggage for free. By continuing this free service Southwest Airlines has kept a competitive edge over other airlines and currently maintains great customer satisfaction. Another example Southwest Airlines controls cost it’s the use of secondary airports. Secondary airports are less expensive to operate in and often more convenient to customer traveling to cities where major airports are also located.
As the current CEO of Southwest Airlines quoted, “Our people are our single greatest strength and most enduring longterm competitive advantage.” (www.southwest.com). In order for this to happen, Southwest Airlines beliefs in being committed to providing every employee a stable work environment, fostering personal growth, and are encourage to use their creativity and innovation. Southwest Airlines group culture is very appealing to someone who is looking for a long-term career, and as an engineer and manager I would definitely work for such organization. For an engineer, the ability to bring new ideas to the table is what makes the work exciting and satisfying.
In this highly competitive environment, product differentiation becomes increasingly important, therefore the search for new amenities such as high-tech entertainment, excellent customer service, and more convenient airports are only the beginning. Every successful company has major differences that set them apart from the competition, whether is time spent on keeping costs low, offering low fares, or operating safely and efficiently, it all boils down to providing the best service for its customers and employees.