Business selection Essay Example
Business Selection – Southwest Airlines
The analysis will be based on Southwest Airlines, which is one of the most successful airlines using the low-cost carrier (LCC) model. The following are some of the reasons why Southwest Airlines will be used as the subject of the analysis.
First, Southwest Airlines has remained profitable over the years in an industry in which many competitors have faced bankruptcy (Southwest Airlines Co. 2016, p. 2). Southwest Airlines has managed to maintain a healthy financial status for many years unlike some of its competitors who have failed to successfully deal with the challenges that characterise the airline industry. Therefore, it will be important to analyse how the company has remained profitable.
Second, the company is one of the pioneers of the LCC model that carriers use to achieve cost leadership in the industry. Southwest Airlines remains one of the best examples of airlines that have used the LCC model to become consistently profitable. Therefore, it will be important to evaluate how the company has achieved its business objectives using this model.
Third, the company is known for its corporate culture set by its founder, Herb Kelleher (Makovsky 2013). It will be important to analyse the role that the corporate culture of the company plays in the organisation’s success.
Fourth, the company continuously revises and improves its operations. For example, the company is known for how it successfully reduced the period that its planes take at airports as a way of increasing profitability. Therefore, it will be important to analyse how the company successfully improves its services to remain competitive in the industry.
Makovsky, K 2013, ‘Behind the Southwest Airlines culture,’ Forbes, 23November, viewed 8 June 2017, <https://www.forbes.com/sites/kenmakovsky/2013/11/21/behind-the-southwest-airlines-culture/#38c181ca3798>.
Southwest Airlines Co. 2016, Southwest Airlines Co. 2016 annual report, viewed 8th June 2017, <http://investors.southwest.com/~/media/Files/S/Southwest-IR/Annual%20Reports/2016_AnnualReport_LUV.PDF>.
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