SOUTHWEST AIRLINES

Southwest Airlines Strategic Plan Alignment



Southwest Airlines Strategic Plan Alignment

Southwest Airlines

The presence of a low-cost competitor is so influential that even in cases where the entry of a low price is accompanied by the release of other competitors, the average rate of descent. In all markets for at least one other competitor in the market is reduced when the low-cost carrier entered, however, average tariffs have declined. This finding reinforces the conclusion that the type of competitor in a market, rather than the number, thereby increasing competition. This is an investment for growth in low-price competition in the past two years. (Behind Southwest, 1998)

As the number of passengers to benefit from lower prices, competition has grown over the years; this trend was reversed in 1997. In 1997, both the absolute and relative number of passengers in markets with low prices, competition is reduced. 136.5 million Passengers who took advantage of low price competition in 1996, compared to only 50 million four years earlier. The growth of low-cost competition is of great importance, because the rates are much lower in the city-pair markets of this type of competition, particularly in markets below 750 miles. In 1997, the average for air travelers in the United States saved $ 75 to $ 95 per round trip when he or she went on the market less than 750 miles, if that airline travel between cities that are competition with the services of a low fares airline. The savings are far more important in the markets in which the cities of the center of the network. Business travelers have been forced in recent years to bear the burden of higher network tariffs in markets where the transporters are not exposed to competition from low-cost, fees and businesses continue to grow. According to the American Express Business price index the average price paid by business travelers American Express in a variety of fare categories in 1997 was nine percent higher than 1996. (Behind Southwest, 1998)

Stakeholders

This communication made employees well aware of the purpose of the changes: “The changes were made to watch the bottom line and keep stakeholders happy and in order to remain independent.” Employees stressed that, “We don't want to be bought out and merged, and [therefore] we need to make more money in order to stay independent.” They believed that the only way they could continue to provide excellent customer service was to remain an independent, community bank: “Good service equals independence.” Even though employees felt the branches were understaffed after downsizing, they recognized that “the truth is, money was being spent that didn't need to be spent, and now, everything is streamlined.” Due to this change, the alignment of HR practices became even more essential as a mechanism for holding the organization together, for maintaining high levels of commitment and a continued focus on delivering quality customer service. For example, the importance of teamwork and cross-training became particularly salient due to the downsizing: “It was a rough transition for a while, ...