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Southwest Airlines Case Study

Southwest Airlines (“Southwest”) and began in 1971 and was founded by Rollin King and Herb Kelleher, servicing Dallas, Houston and San Antonio. Southwest keeps things simple and consistent, which drives costs down, maximizes productive assets and helps manage customer expectations. Southwest is a low-cost air carrier that offers nearly 3,400 flights per day to 72 cities in 37 states.
Southwest’s tangible resources include financial resource, physical resource and technological resource. * Financial Resources: Managing their cash well, generating over $985,000,000 and with an operating income of $262,000,000 in the fiscal year of 2011.

* Physical Resources: Instead of having agents or computerized booking systems, they have implemented a travel agent, Centre and vending machines at the airports. Southwest operate a wide variety of aircrafts; employed scores of pilots, flight attendants, ticket agents and dispatchers; and implemented comprehensive safety programs. Southwest require physical resources to operate successfully and meet safety and profitability goals. Southwest boasts a fleet of 550 planes, making as many as six flights per day. Southwest features a fleet entirely made up of Boeing 737 airplanes.

* Technological Resources: Southwest is always one-step ahead, cutting down on additional cost and using only single type of airplane Boeing 737 for the entire fleet.

Southwest intangible resources include human resource, reputation resources and organizational capabilities. * Human Resources: Southwest have grown and increased their employee strength over the past several years from only a 195 in the year 1971 to over 45,000 in the year 2012, consisting of 19,000 flights.

* Reputation Resource: One of the lowest costing airlines, known for their well-mannered attitudes and excellent

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