It is encouraging to see that one airline, Southwest Airlines, is demonstrating its cultural values in widespread consumer contempt for the airline industry. Herb Kelleher, the airline’s co-founder and Chairman Emeritus, accurately characterized its entire philosophy when its core principle was described as the business of business are people. Despite the fact that the company honors and values all of its stakeholders – employees, customers, suppliers, vendors, and shareholders – the organization prioritizes its employees. Southwest Airlines understands that treating its staff properly leads to satisfied customers, which results in financial success.
They have established a Culture Services department, whose objective is to maintain a focus on the company’s values, people, and low cost. “Culture Blitzes,” in which a Culture Services team visits an airport and touches every Southwest employee there with food and fun, are one method they remind staff of the culture (Quellmalz, 2020). Leaders and high-potential associates receive comprehensive leadership training that lasts up to three weeks and exposes them to the company’s management best practices. They are urged to be aware of their colleagues’ needs outside of the workplace, and they have been given the authority to spend money on their coworkers (Quellmalz, 2020). Providing flowers after a loss and sending Southwest-branded baby things to an employee’s children are examples of this.
In addition to having highly motivated personnel and excellent customer service, Southwest Airlines is one of the most cost-effective air travel options. Compared to other prominent airlines such as Delta and American Airlines, their pricing approach delivers remarkably low rates. To be able to provide low prices, Southwest had to develop its business strategy around minimal operating costs (Quellmalz, 2020). It only operates a few different aircraft types, which helps the airline save money. It also serves smaller airports where gate access is less expensive. Southwest Airlines will match any lower-priced ticket found by a customer.
Any airline operating company must retain and strengthen a set of competitive advantages developed apart from its competitors. Southwest Airlines’ business model is built on highly efficient operations, low-cost pricing, and modern logistical solutions. In addition, its strategy puts a strong emphasis on client experience and innovation. Finally, none of this would be achievable without highly motivated personnel. Southwest acquired many competitive advantages due to this right approach, remaining relevant in a fast-changing market.
Quellmalz, R. (2020). How Southwest Airlines’ culture fuels its success. Topic Insights. Web.