Identify the resources of Southwest Airline and what its capabilities

Southwest Airlines

Resources

Tangible Resources

Financial Resources - Southwest has always managed its cash well . In the financial year 2001 , the airline had generated 64 ,446 ,773with an operating income of 821 ,659 and a credit value very good

Physical Resources - In all the cities it operates instead of having agents or computerized booking system Southwest has its reservation centre and vending machines at the airports . Previously Southwest only operated in cities near Texas , but started to expand in 1993 to other areas in the northeast part of US where the population

density was the highest . In addition the company assets have also increased from 22 million in 1971 to approximately 9 billion in 2002

Technological Resources - Southwest has always believed in cutting down additional cost . One of the strategies has been to use only a single type of airplane Boeing 737 for its entire fleet . The size of fleet in 2002 was 355 . Of the remaining aircrafts were leased . At the end of 2001 , Southwest was committed to 132 s for the 737-700 aircraft . The company 's website is responsible for 46 of the has the one of the largest number of clicks per day among all the airline operators

Intangible Resources

Human Resources - Southwest airlines increased its employee strength from 195 in the year 1971 to approximately 34 ,000 in the year 2002 . The airline has never laid-off an employee during this period . The company 's management team is excellent be it the president Herb Kelleher , CE James Parker or COO Colleen Parker

Reputation Resources - The brand value of Southwest is one of the most unique in its area . The airline in addition to being known as a low-cost airline , Southwest is also known for its excellent service and quirky attitude . The customer associate the name Southwest with an airline that is fun to fly with , caring and also economical

Capabilities

Management - The management of Southwest is considered to be one of most dynamic of all times . The management policies introduced by Herb Kelleher are considered by industry analysts to be intuitive and effective . This quality is also shared by other members of the management chiefly the COO Colleen Barrett

Distribution - By April 2002 , Southwest was operating in about 58 cities in United States . The growth plan has been conservative with only a few cities being researched and added each year . The company has also avoided the temptation to start international services

Marketing - Southwest has always been aggressive in promoting itself The slogans of the company are as famous as the airline itself . The most famous example was the ad Nobody 's going to shoot Southwest mott of the sky for a lousy 13 , in 1973 , when Brainiff airlines started selling the tickets for one of its routes at the price for competing with Southwest

Human Resources Management - Southwest has always maintained good relations with the employees . The company has 81 of its labor unionized and the pilots prefer to belong to an independent union instead of the usual...