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case study , SW Airlines:

March 24, 2016 | Author: | Posted in case study, mathematics and economics

SW Airline

A Case Study by Todd Carnes

Teacher : Gabriel Stenzel

SW Airline- A Case Study by Todd Carnes


In the aftermath of the deregulation that rocked the airline industry of the United States in 1978 , one airline was born and eventually grew to become a major competitor in what is typically known as a difficult industry characterized by bankruptcy and disaster at every turn . This airline , recognizable by virtually every American , is Southwest Airlines . Through sheer determination and a fighting spirit , the organization has survived many of [banner_entry_middle]

the pitfalls of the airline business In this , the five major issues that Southwest has faced as well as how the issues came about and were resolved will be discussed

PROBLEM 1- The Legal Battle to Exist

When discussing the problems that Southwest has faced , it is interesting to realize that the airline has literally faced challenges before it even existed , or more precisely , a challenge to be allowed to exist . In the late 1960s , Southwest was given permission to fly from the Texas Aeronautics Commission however , its biggest competitors-Braniff , TransTexas and Continental , waged a legal battle to keep Southwest out of the marketplace (Buller /Schuler , 1998 . For the fledgling company , it appeared that they were doomed before they began but this was not to be the case for a variety of reasons

Resolution of the legal battle , ultimately in Southwestern ‘s favor came mainly because of the efforts of one man- Herb Kelleher , the company ‘s CEO , but also because of the underdog fighting spirit that the organization would soon be known for throughout the business world Kelleher possessed a great deal of legal expertise and training and used this , combined with determination and tenacity , to win the legal case which literally opened Southwestern ‘s gates for business

PROBLEM 2- Ability to Grow

Having survived the battle to be born , Southwest enjoyed some early successes and looked forward to a bright future however , some dark clouds loomed on the horizon . As with most businesses , Southwest sought organizational growth , but this became difficult because of the fact that the company seeks to grow but is in an industry where profit margins are low and competition is a constant problem (Buller /Schuler 1998 . As usual , however , Southwest used its winning attitude to overcome this obstacle

The key to Southwestern ‘s ability to grow while avoiding the pitfalls that have destroyed larger and more established airlines in the past came as a result of their careful market research , which all but eliminated the possibility of failure in a given market , since Southwest would only choose to compete in those markets where they could be successful . By keeping the expansion effort controlled in this way safe growth was possible

PROBLEM 3- Imitation by Competitors

As was mentioned earlier , the airline industry is one where competitors are constantly a threat . Beyond competition , imitation by competitors can be even more dangerous , and because of Southwestern ‘s success , the imitators have been plentiful . However , these imitators… [banner_entry_footer]

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