Innovation at Southwest Airlines: Reinventing the Business Model, by Hervé Mathe, Xavier Pavie, Marwyn O'Keeffe
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Innovation at Southwest Airlines: Reinventing the Business Model, by Hervé Mathe, Xavier Pavie, Marwyn O'Keeffe
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Southwest Airlines, the world’s first low-cost airline carrier, is a company that has captivated the attention of the business world over the course of its forty year history as an airline displaying relentless growth coupled with a much envied employee spirit and a passionately loyal customer base. Since its inception in 1971, the company has maintained the momentum and agility of a young start-up company, has nourished a unique and powerful company culture, and continued to grow and fluidly adapt to the changing environment year after year. As Southwest celebrated its 39th consecutive year of profitability in 20101, the company had 35,000 employees2 serving 72 cities in 37 states3 and operating over 3,400 flights per day4. Market share grew to 21 percent of the domestic market in 2010 (see annex 1) making it effectively the largest airline carrier in the United States5. While remaining true to the original promise of low-cost airfare combined with friendly, reliable service, the Southwest Airlines business model has been in a state of incremental evolution over the course of its forty-year history. The success of this airline company remains an aberration in the cyclical airline industry which fluctuates regularly between profit and loss; SWA is the only airline that has never suffered a loss. The company pulled through the worst of the crisis healthier than ever, with just one uncertain year in 2009, to demonstrate strong growth and profitability in 2010 without resorting to staff layoffs, an exceptional feat in an industry that is highly susceptible to the whims of the market.
Innovation at Southwest Airlines: Reinventing the Business Model, by Hervé Mathe, Xavier Pavie, Marwyn O'Keeffe- Amazon Sales Rank: #567761 in eBooks
- Published on: 2015-03-05
- Released on: 2015-03-05
- Format: Kindle eBook
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