Southwest Airlines Case Study Soloution

Q1) Financial Data of southwest Airlines for fiscal year 2014-2018

Particular 2018 2017 2016 2015 2014

Revenue($B) 21,965 21,146 20,289 19,820 18,605

Net Income($B) 2,465 3,357 2,183 2,181 1,136

Load Factor (%) 83.4% 83.9% 84.0% 83.6% 82.5%

Trips flown(M) 1,375,030 1,347,893 1,311,149 1,267,358 1,255,502

Revenue Passengers

carried(M) 134,890,243 130,256,190 124,719,765 118,171,211 110,496,912

Number of Aircraft 750 706 723 704 665

Q2) low cost provider strategies works best when

The companies don’t spend aggressively on their resources and make optimum use of the resources and using competitive low-cost assets to remain competitive superior. Companies should also invest in technologies which are cost-saving.

Two condition which would best apply to the case of Southwest

A) Price competition among rival sellers is vigorous-There are many airlines in America namely American Airlines, delta Airlines, Frontier , JetBlue ,Southwest airlines .Out of which southwest airlines provide the cheapest fares with same facilities, So in such a highly competitive markets the customer go for a cheaper option rather a costly option. This condition is best applied to southwest as charging low fares attract more customers and by attracting more customers the airlines is making profit.

B) Buyers incur low costs in switching their purchases from one seller to another-when there are a lot of option to buyer the buyer always chooses the cheaper option where the product quality and service remain the same. And, when there is low cost involved in switching from one product to another product in case of southwest airlines the customer could switch from other expensive airlines to much cheaper airlines without any cost which was in favour of southwest airlines.

Q3) Corporate Culture

Corporate culture refers to the beliefs and behaviors that determine how a company's employees and management interact and handle outside business transactions. Often, corporate culture is implied, not expressly defined, and develops organically over time from the cumulative traits of the people the company hires. A company's culture will be reflected in its dress code, business hours, office setup, employee benefits, turnover, hiring decisions, treatment of clients, client satisfaction, and every other aspect of operations.

Dimension of Corporate Culture of Southwest Airlines

1)Employees come first-Southwest follows the principal employees come first and customer come second. This