Southwest Airlines Co., frequently referred to as just Southwest, is a major airline firm in the United States. It currently services 121 domestic destinations and 10 international flight paths. The company has continuously expanded out of its native Texas since 1979 and uses Boeing 737 models exclusively. Its business model is distinct as it utilizes ‘rolling hub’ methods, which allow for departing flights a number of times a day to allow customers longer connection times. Similarly, the airline avoids a central hub and utilizes point-to-point travel with free checked baggage.
Southwest Airlines was selected for this report due to the fact that while it’s a major airline firm operating in the U.S. and directly competes with large companies like American Airlines, it still upholds a variety of unique business methods. For instance, Southwest does not have seating except the economic class, and most amenities are provided to all passengers. Similarly, the rolling hub format does decrease the profitability of increasing flights to peak times only, it provides customers with easier transitions for connecting flights. Similarly, point-to-point networks may also be less profitable than traveling to more popular and centralized locations but do allow customers to fly directly to their desired locations. Southwest Airlines provides an interesting example for a manager as the firm profits from customer relations and not time management efficiency.
Southwest Airlines uses a selection process in regards to working with certain suppliers and vendors. This process is influenced by the requirements of the company and the conditions of the supply market (Southwest, n.d.). Similarly, the firm focuses on achieving results in a way that is most efficient and vendors are a part of this process. Similarly, the company considers how supplier and vendor choices will affect their customers.
Reference
Southwest. (n.d.). Supplier information. Southwest. Web.