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Corporate Culture / Leadership Actions

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Corporate Culture /Leadership Actions for Strategy Implementation


Rhonda Stanley

A Paper Presented in Fulfillment

of the Requirement for


Strategic Management

Strayer University

Professor Joel Nwagbaraocha

September 9, 2010

1. Discuss the corporate culture at Southwest Airlines and how it leverages its culture to achieve a competitive advantage.

Southwest Airlines was incorporated in Texas in June 18, 1971. Southwest started

with only 3 Boeing 737 aircraft and they only serviced Houston, Dallas, and San

Antonio. Today Southwest operates 541 Boeing 737 aircraft and they service 69 cities.

Southwest became a major in the airline industry in 1989 when it exceeded the billion

dollar mark in revenues. Southwest is the US most successful low fare high frequency

airline. Southwest operates more than 3,510 flights a day coast to coast making it the

largest US carrier based on domestic passenger carried. Southwest maintains the third

largest passenger fleet of aircraft among all of the commercial airlines. According to the

Department of Transportation Bureau of Transportation Statistics Southwest carries more

passengers than any other US airline.

Southwest profitability business model led to a common trend called the Southwest

Effect. The Southwest Effect is to show that it is less expensive to take a flight than

driving between to points. Southwest entered the airline market at rates that allowed the

airline to be profitable only on the basis of lean operations and high aircraft use. The

main ides of the Southwest Effect is when a low fare airline enters the market, the

market changes, and grows drastically.

The airline…...

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