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Mkt 500 Assignment 1

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Mkt 500 Assignment 1
Diversification Strategies
Southwest Airlines

Southwest Airlines was started 45 years ago in 1967 by two entrepreneurs: Herb Keller and Rollin King who had the right vision and culture by which to become successful entrepreneurial leaders. This vision was achieved as Southwest Airlines became the greatest airline in the USA. As a young business in the airlines industry, Southwest Airlines in the initial years confronted very tough situations, and it was due proper planning and with the assistance of its employees that kept Southwest Airlines afloat from sinking. There were already pioneer big companies well established in the airlines industry when Southwest Airlines joined the industry. Some of these companies had a good share of the market and with low over head costs. Such a scenario makes it problematic for a new comer to get a solid footing in the industry. Through these decades, times have been changing and Southwest airline have been changing its waste of operation to keep up with the time. Gould stated, “Core competencies are not constant. They tend to change as the organization changes. Therefore, it’s important that the competencies are flexible and not etched in stone.” (p.5, 2008) The history of the air industry is characterized with very tough competition among companies. Besides, it is even tougher for new companies to enter the industry.
The corporate head office of the Southwest Airlines is located in Dallas, Texas and that was where it was initially founded. They started with only three planes.
Southwest Airlines’ corporate culture differs significantly from the other airlines in many ways, as we shall see herein below. The unique difference between the corporate culture of Southwest Airlines and the other airlines is one of the major factors responsible for the prosperous survival of Southwest Airlines. There is a fierce competition in the airline industry. Perhaps because of this competition, companies that are established in



References: Flynn, Simone I. Business Cycle-Research Starters Business; 2008, p1-1,12p Bundgaard, Tycen. Strategic Report for Southwest Airline; 2006, P.1-33 Gould, Marie. Sustainable Competitive Advantage-Research Starter Business; 2008; p1-1, 17p Diagram Erbschloe, Michael. Customer Loyalty Programs-Research Starters Business; 2009, p1.-9, 9p Bachmann, John W. Academy of Management Executive; 2002, vol. 16 Issue 2, p61-65,5p

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