Southwest Air 2008
Krishane Pillay
HRM 5804 Reaction Summary #1: Southwest Air 2008
SWA (Southwest Air) has been very successful, but that is no guarantee of success in the future. What do you see as the key challenges and threats to SWA's future? Are you optimistic about SWA or pessimistic? Despite the prior success of SWA, the company potentially faces an internal threat to its continuing success. Having lost their CEO, Herb Kelleher, SWA is in a similar position as Apple. Kelleher has played a vital role in building SWA, through his interpersonal skills and sharp business acumen. Given the competitive nature of this industry, without the strategic leadership and direction of Kelleher, SWA faces numerous challenges and critical decisions that could impact its future success. One of the challenges that Southwest may face relates to its investment in the B737s. While this investment was initially a competitive advantage for southwest, it could potentially work against SWA in the future. The continued rising cost of oil has prompted new technological changes in the airline industry. Additionally, the introduction of smaller and faster regional jets could give new entrants or existing carriers a technological advantage over SWA given that SWA is currently locked into more outdated technology. Despite the challenges SWA faces, I am optimistic about the future of SWA. For 30 plus consecutive years Southwest air has been able to sustain its advantage and profit, while not falling into the growth trap. The company’s financial stability enables it to finance new ventures and pursue innovative technologies. The internal strengths of Southwest Airlines are vast and include a great work climate for employees. They are heralded as one of the greatest companies to work for due to a strong internal support network for employees. The culture and image of the company are also widely known to and favored by
HRM 5804 Reaction Summary #1: Southwest Air 2008
SWA (Southwest Air) has been very successful, but that is no guarantee of success in the future. What do you see as the key challenges and threats to SWA's future? Are you optimistic about SWA or pessimistic? Despite the prior success of SWA, the company potentially faces an internal threat to its continuing success. Having lost their CEO, Herb Kelleher, SWA is in a similar position as Apple. Kelleher has played a vital role in building SWA, through his interpersonal skills and sharp business acumen. Given the competitive nature of this industry, without the strategic leadership and direction of Kelleher, SWA faces numerous challenges and critical decisions that could impact its future success. One of the challenges that Southwest may face relates to its investment in the B737s. While this investment was initially a competitive advantage for southwest, it could potentially work against SWA in the future. The continued rising cost of oil has prompted new technological changes in the airline industry. Additionally, the introduction of smaller and faster regional jets could give new entrants or existing carriers a technological advantage over SWA given that SWA is currently locked into more outdated technology. Despite the challenges SWA faces, I am optimistic about the future of SWA. For 30 plus consecutive years Southwest air has been able to sustain its advantage and profit, while not falling into the growth trap. The company’s financial stability enables it to finance new ventures and pursue innovative technologies. The internal strengths of Southwest Airlines are vast and include a great work climate for employees. They are heralded as one of the greatest companies to work for due to a strong internal support network for employees. The culture and image of the company are also widely known to and favored by