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Bus 599: Crafting and Executing Strategy
Dr. Denean Robinson
Assignment: Assignment #5: Corporate culture/Leadership Actions for Strategy

Discuss the corporate culture at Southwest Airlines and how it leverages its culture to achieve a competitive advantage Whereas the litany at many companies or firms is that customers come first, at Southwest, the operating principle was that employees come first and customers come second. Southwest’s management believe that delivering superior service required employees who not only were passionate about their jobs but also knew the company was genuinely concerned for their well-being and committed to providing them with job security. Southwest placed emphasis on attitude in service delivery. Southwest hired employees for attitude and trained for skills. Management believed that delivering superior service came from having employees who treated customers warmly and courteously. Adding good customer service to other consumer satisfaction variables such as low-cost, low-price, no-frills strategy, the colorful attire of her hostesses, and shorter average flight turn-around time, Southwest enjoyed a relative competitive advantage. In 2000, the number of passengers on Southwest flights exceeded 60 million, and revenue surpassed the $5 billion mark, the company recorded its 28th consecutive year of profitability and 9th consecutive year of increased profits. By this period Southwest became the 4th largest U.S. airline in term of passengers carried. Southwest’s growth continued at a geometric rate. By 2008, more people were flying Southwest Airlines than any other U.S. airline and the 6th largest in terms of revenues (Exhibit 2, c-401). The company enjoyed a larger market share in the airline industry which gave rise to economies of scale and scope. Southwest had been profitable every year since 1973 in an

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