Southwest Case Analysis
Southwest has turned an organization away of featuring low-fare, brief haul paths between city pairs. It has concentrated especially on providing low-fares in all of the flights by managing its not any frills frame of mind and higher frequency of travel arrangements. This has provided Southwest Airlines with the lowest cost structure in the industry. Southwest has created a niche to get itself simply by flying a network of flights among smaller U. S. cities that common just one hour apart. It has differentiated them from their competition and averted many dissension with industry giants who also concentrate more on coast-to-coast flights. Kelleher, who is the president, chairman and CEO of Southwest Airlines may be the companies single biggest asset and driving force. Kelleher runs the company incredibly tightly besides making all the key decisions through a very central decision making procedure. This brings to light two potential concerns. Firstly, how could a company including Southwest air carriers maintain these kinds of a central organization when confronted with growth. Second of all, how is this company going to survive once Kelleher has ceased to be running that.
The problem that Southwest Flight is facing, is how are they going to survive in an aggressive market without Kelleher's leadership. It is a significant problem as the business is a symbol of Kelleher. However , unlike the company, Kelleher has a limited life-span and therefore the company will probably outlive him. This problem as a result requires a few urgency because the sequence of Kelleher could be the air carriers biggest issue. The consequences of Kelleher going out of could be the fact that company seems to lose its unternehmensidentitat. Employees might not respond well to new management. Customers may perceive that the business will not be operate in the same manner and will therefore lose its niche market. This could likewise apply to stakeholders, who will begin to see the departure of Kelleher like a serious decline in the value of the company. Competitors may also try to take full advantage of...
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