Southwest Airlines: How One Airline Positions Itself in a Competitive Market.

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BUSINESS AND SOCIETY (BUS105)

Southwest Airlines: How One Airline Positions Itself in a Competitive Market  

Kimberly R. Stokes

 Unit 4 - Marketing

Instructor: Guido Fiermonte

January 31, 2004


Southwest Airlines (SWA) has positioned themselves as a “different” kind of airline by following this one simple notion from Rolling King and Herb Kelleher: “If you get your passengers to their destinations when they want to get there, on time, at the lowest possible fares, and make darn sure they have a good time doing it, people will fly your airline.” ().   With more than 2800 daily flights, SWA has become the third largest major airline in America, flying more than 64 million passengers a year to 58 cities all over the Southwest and beyond.  

How has SWA exemplified this “difference?”  Well, SWA’s mission statement, for instance, includes not only the customers but their obligation to their employees as well.  To their customers: “the mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit.”  Their commitment to their customers and their sincere effort to carry-out this mission is evident in the many accolades, compliments and highly positive reviews they have received over the past 30 years ().  To their employees: “we are committed to provide our Employees a stable work environment with equal opportunity for learning and personal growth.  Creativity and innovation are encouraged for improving the effectiveness of Southwest Airlines. Above all, Employees will be provided the same concern, respect, and caring attitude within the organization that they are expected to share externally with every Southwest Customer.”  Obviously, SWA is aware that they must provide a professionally nurturing environment for their employees in order to truly fulfill their responsibilities to their customers.  SWA recognizes the importance of meeting the needs of their employees and knowing that each one of them has contributed to the overall success of the airline. This “difference” is noted and often mimicked by their competitors.

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Another distinguishing quality of SWA is that their customers are not assigned seating – period!  Most major and not-so major airlines have assigned seating.  SWA’s policy definitely sets them apart from all other airlines.  Their reasoning behind this “first-come, first-served philosophy is speed and efficiency.  Without seat assignments, SWA can turn planes more quickly at the gates, thus, eliminating the possibility of delayed flights (Fred Siebel and Chuck Thomas).  The idea of not-assigning seats was conceived in 1971 which was the birth of Southwest Airlines.  Though many customers and competitors alike, have publicly expressed their pros and cons regarding the ...

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