Southwest Case Analysis

Retaining let loose cost structure is the root hack for south-west Airlines. southwestern Airlines core competitive advantage was the cleverness to handle disgrace costs in their trading operations. cut down costs of operations in the southwest al sufferinged them to offer lower fare prices, close 50 percent lower than its major competitors. With the time changes it wasnt actually easy for southwestern Airlines to pertain this situation. Workers unions started to stand up and question round their wage increases. raise expenses are started to upgrade up every day. These factors directly abnormal the Southwests overall performances and its stock prices. Stock prices started to pass up gradually. Still Southwest caution tried to economise their low cost outline even when the ac federation was evolution rapidly and their external and infixed factors stand-in against them. According to my analysis, Southwest direction didnt overhear a wide term computer pro gram to maintain their low cost strategy. Herb Kelleher the chief decision maker officer of Southwest was able to maintain a very strong kindred with workers. But the crude management didnt able to maintain it. With the growth of Southwest Airlines it reached to 35,000 of workers and its culture state to get change. As the comp whatever growing management didnt able to control track on their workers and their needs.

That was a high-risk fail for the company because the company and its workers used to maintain a great consanguinity between them for a very long time. Workers started to complain about staff shortage and th eir low wages. These incidents fall upon di! rectly for the companys overall performance. With the fast growth, Southwest Airline management couldnt take the right actions to continue up with the growth. They stay workers to do more work than they unremarkably do, which put them at risk of injury. Management should have employ more new workers as the company growing so the current workers wont be in any risk. Managers should have provided more benefits for its workers when company...If you want to get a broad(a) essay, order it on our website: OrderCustomPaper.com

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