An Assessment of Southwest Airlines

1376 words 6 pages
An Assessment of
Four Function of Management within Southwest Airlines

An Assessment of
Four Function of Management within Southwest Airlines According to Edward de Bono "an expert is someone who has succeeded in making decisions and judgments simpler through knowing what to pay attention to and ... Creativity involves breaking out ..." Southwest Airlines has done just that, in a world of high competition and drastic changes they paid close attention to their customers needs, therefore, succeeding when many other airlines were failing. In a time of national tragedy (9-11) this airline pulled together to develop create ideas to prevent them from going through bankruptcy as many of their business rival suffered. With a motto of
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Strange that it maybe, this practice and the low costs of operation have made Southwest Airlines one of the most successful airlines in the history of airline travel.
While a number of airline companies throughout the world are scrambling to drive sales through partnerships, Southwest has maintained its independence primarily by transferring its well worn offline success to the Internet. Success hasn't made Southwest Airlines any less cautious about E-business. With $1.7 billion 30% of last year's sales coming from its Web site, where the costs are as much as 90% less than using a phone representative or travel agent, the budget airline has put together a profitable Internet business by any measure(Southwest, 2005). Yet Southwest continues to tread warily toward its online future. Only in recent months has it started offering car rentals on its Web site, using preferred partners Alamo, Budget, and Hertz. Hotel reservations with partners including Hilton, Hyatt, and Marriott will have to wait for the results from car rentals Simplicity and low costs are at the heart of Southwest's and the airline didn't lose sight of that as it moved online. Reservations flow through the same IT systems whether they're made online, from a call center agent, or through an independent travel agency. Passengers navigating their way through Southwest's Web site needn't log on or submit passwords to purchase tickets. With only five


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