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Diversification Strategies: the Secret of Southwest Airlines" Success

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Assignment 2: Diversification Strategies
“The Secret of Southwest Airlines’ Success”

BUS 508, Contemporary Business

Determine how Southwest Airlines’ corporate culture differs from other airlines: From the time Herb Kelleher co-founded Southwest Airlines in 1971 his goal was to establish a company that cared about its employees, who would in turn care about and service the needs of their customers with pride. Southwest has created a fun-loving work environment that rewards and appreciates unique personalities and how they can enhance the customer service experience of their patrons. This is refreshing in today’s market and the main difference between Southwest and other airlines. The mission of Southwest Airlines is to ensure satisfaction of their internal as well as their external customers. The external, of course, being the traveler and the employee is viewed as an internal customer. Externally, Southwest focuses on customer service, delivered with “a sense of warmth, friendliness, individual pride, and company spirit.” Customer service is number one (#1) for this airline. It is displayed in their every movement. The airline’s president, Collen Barrett is quoted as saying, “Southwest likes to think of itself as a customer service organization that happens to fly airplanes.”(Smith, 2004) The airline is dedicated to their customers. When other airlines felt the economy crunch and decided to start charging customers to check bags, Southwest refused to add a charge to their customers. Another way Southwest differs is in their dedication to being the low cost provider of air travel. One of the unique qualities of Southwest has been their ability to charge low fares and continuously make a profit. An article in Fortune points out that South west is not only the largest US domestic airline but also responsible for 90% of the low-fare airline…...

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