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Running head: CASE STUDY: SOUTHWEST AIRLINES 1 Case Study: Southwest Airlines Desirae Freiberg Grand Canyon University: FIN-504 June 7, 2017
CASE STUDY: SOUTHWEST AIRLINES Introduction Southwest Airlines has been around since 1971. The purpose of Southwest Airlines at its founding was to provide low cost flights with the best customer service. Since then the company has grown into a worldwide recognizable brand. The LUV logo has become a symbol of Southwest Airlines, it symbolizes the company’s goal and dedication to providing the best customer service in the Airlines Industry. I have been flying on Southwest Airlines for as far back as I can remember. I can count on one hand the number of times I have flown on a competitor Airline. After taking a closer look at the financial health of Southwest Airlines. I can see why it’s the leader during a very tough time in the airline industry. Rising gas prices, baggage prices, taxes, and fees are just some of the reasons that competitor Airlines have had to increase its ticket prices. These reasons are why people are choosing Southwest Airlines more and more over the competitor for domestic flights. It has managed to keep their prices very close to unchanged while not charging their customers hidden fees or baggage fees. Southwest Airlines does have room for growth within their current structure. With an expansion to include a wide range of international flight Southwest Airlines could potentially be the leader in the airline industry. The fact that Southwest Airlines is a primarily domestic based flight company could be their only downfall. 2
CASE STUDY: SOUTHWEST AIRLINES Case Study 1. Analysis of Fundamentals: Goal, Strategy, Market, Competitive Technology, Regulatory and Operating Characteristics. Southwest Airlines has been a staple in the airline business for many years. It is the preferred mode of air travel for millions of people. The only airline in the business with no hidden fees. This gives them an edge over their competition. An analysis of the fundamentals of Southwest Airlines will give insight as to why so many people love Southwest Airlines. Southwest Airlines has always been dedicated to the highest level of customer service. Delivering the best customer service with warmth, friendliness, pride, and a spirit for the company. Although their goal is to provide a high end outside customer service experience, they also strive to provide an excellent inside customer service experience as well. Providing an environment of personal growth and learning for their employees. The goals of the company remain focused on the customer but also on their bottom line. Every company no matter how focused on the customer they may be are also focused on profits. Based on analysis of the income statement, balance sheet, cash flows statement, and financial ratios the company is in a very good financial place.

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