The article commences with introducing the original business concept of Southwest Airline, which lead to their exceptional success and growth. Their recipe for success:extraordinary customer service , personal care low prices and usage of information technology.
Southwest is the biggest airline in US based on number of passengers. In 2006 marked its 34 th consecutive year of profitability. The Key factor for that achievement was that the passengers service-above the accepted norms in comparison to their competitors. But in the 21th century is good clients’ service enough in order to succeed?
I assert that is not enough for the following reason. For instance, the most successful businesses are using technologies in order to facilitate their activities and even to increase their profit. Nowadays, if you want to run a really profitable business like an airline, the usage of IT is inevitable. In 2007 Southwest airlines succeeded in becoming an IT-enabled company, with that step they proved their reputation as firm in the twenty-five most innovative companies in the world.
Southwest have pursued four objectives: financial success, operating efficiency, customer satisfaction, and safeguarding their firm foundation. The company started to tick the objectives off with the help of information technologies. In the middle 1980s Southwest developed its own reservation system. The airline was for this time the first company that introduced ticketless system. Other remarkable achievements were that in 1996 SW was the first company that was selling its tickets online, in 2002 the company introduced self-service check-in machines and in 2007 more than 70% of the company revenue was generated by Sauthwest.com-in that time the most frequently visited airline website.
Recently I have found information that Southwest Airline is a client of Boeing for more than 40 years and till 2010 it has bought 208 planes for 19 billion dollars. Even though it has 208 planes, it has ordered 150 of the new version of Boeing’s 737’s MAX .Therefore, SW became the largest operator and most important customer for Boeing.When I read that I felt positively surprised because this company is taking into consideration the security of passengers not only its profits. If I have to choose between two airlines in US I will chose for the above-mentioned reason SW.
I will tell you a story from experience. Last month I flight from Berlin to Sofia (capital of Bulgaria) with “Bulgarian airlines” .I was petrified because the plane was very old, everything was inside was plastic, the noise from the engines was strange-as if something is not working properly and the worst thing was when the plane was landing it was jumping on the track as if it was out of control. Consequently, I thought that it is good to live longer than 20 years(my age) and I decided to flight only with airlines which have new airplanes and take really into account the security for the passengers. After I have read the article for the SW order of Boeing I felt surprised of the fact that Southwest is one of few airplane companies that take care appropriately for their customers.
In my opinion Southwest airlines can be associated with professional poker player. Why? Because it has the sky instead of poker-table, and as a player knows when, how and with what to risk in order to be one of the leading airlines. The case studies and the information provided in internet lead me to the conclusion that business is not only profits or bunch of processes like planning, directing and motivating, implementing and controlling, but is a hole system in which you have put your ideas and heart in order to be one of the most innovative and successful companies in the world like Southwest Airline.