If you've ever lived in the U.S, you would hear this popular airline company named 'Southwest Airlines'. It's one of the most successful companies in this industry, and their unique strategies accounts for their success.
Southwest Airlines focus on thorough their own strategy. They had no assigned seats, paid its crews by trip, and used less congested airports like Baltimore. These efforts resulted in having the lowest operating-cost structure in the domestic airline industry and consistently offering the lowest and simplest fares.
They also put emphasis on online booking. In 2002, the cost per booking via the Internet was about $1, compared to the cost per booking of $6-8 through a travel agent. Now, Southwest received 50 percent more searches than any other airlines. Nowadays IT is developing very sharply, so this ratio means tremendous advantages.
I found out that Southwest Airlines is very heart-warming companies for their employees. CEO Herb Kelleher said “If they are happy, satisfied, dedicated, and energetic, they’ll take real good care of the customers. When the customers are happy, they come back. And that makes the shareholders happy.” So I think this company prioritized the happiness of employees first, and this point is most different part compared to other competitive airlines.
Also, hiring system is very unique. That is, peers screened candidates and conducted interviews; pilots hired pilots, and gate agents hired gate agents. By this system, they can identify their common strengths, and hire capable person for the position.
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