Quality Management a Comparison Between Southwest Airline Research Paper

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Quality Management

A Comparison between Southwest Airline and Domestic and International Business Operations

Southwest airline is an American company that offers services domestically. The company's main competition is other domestic airlines. Ford Motor Company is an American automaker that operates in the United States and worldwide. Ford competes in the United States and globally. The decisions made by the leaders of these two organizations have directly impacted the outcome of these organizations. In this paper I will discuss Southwest airlines and how the organization manages to stay competitive domestically. I will discuss Ford and their strategies for remaining competitive globally. I will also discuss the distribution of power in both of these organizations.

Southwest Produces Competition Domestically

Southwest airline is the most successful low fare airline in the United States. This company has modified the way traditional airlines functions and conducts daily business. "Southwest airlines is the largest airline in the United States, based on the domestic passengers carried as of June 30, 2010" (Wikipedia, 2010). The airline operates in more than 3400 cities in the United States and currently only offers domestic flights. Southwest has differentiated itself from the competitors by changing a few key business strategies that have given them the opportunity dominate the industry.

The company's main business strategy is keeping cost low, ensuring that they operate as a low fare high frequency airline. The organization has completely transformed air travel. Southwest airline has now reported 38 consecutive profitable years of operation. The company operates with 550 aircrafts and remains profitable by keeping the aircrafts up in the air. The airline keeps cost low, by cutting out the frills that other airline provide such as in flight videos, priority seating, and assigned seats.

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These are the strategies that keep the airline profitable even in a bad economy. The no frills strategy allows the airline to turnaround their flights in record time, which keeps the plane up in the air.

Southwest remains a successful competitive airline mainly because of it's of the organizations unique business strategies. The company can offer low fares because they keep cost low. The organization can remain profitable in an unstable economy because they can continue to offer low fares, becoming the customer's choice of airline when disposable income is low. The differentiation strategy gives the business an advantage that allows them to be competitive and offer the lowest fares to customers, competition against other airlines.

Quality Management of Southwest

The chief executive officer (Gary Kelly) of Southwest airline has been focused on profitability from the beginning. One of the main financial goals of the organization is increasing shareholders wealth (Box & Byus, 2007). The leaders of Southwest airlines are carefully selected; they are capable, powerful leaders who can lead the organization to success. The managers at Southwest have made many decisions over the years that have led to the continuous success and profitability of the organization. The leaders of Southwest airlines focus on customer service, customer satisfaction and keeping cost low. Mr. Kelly was employed with Southwest prior to the downturn of the economy. He managed to make decisions that would keep the organization profitable during the recession.

Ford Motor Company International Competition

Ford Motor Company is an American company located in Michigan. The company operates worldwide and is considered one of the leaders of the industry (Ford, 2011). Ford competes domestically against General Motors and Chrysler; however their biggest challenge.....

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"Quality Management A Comparison Between Southwest Airline" (2011, May 10) Retrieved May 16, 2024, from
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