Southwest Airlines Case

Employees are the most important assets of an organization and this philosophy has been implemented at Southwest Airlines unwaveringly . As a result the company has managed to develop a human capital that has served as a source of sustainable competitive advantage . The human capital at Southwest Airlines is based upon core competencies that are aligned to the vision and mission of the company . This alignment has been facilitated because of Herb Kelleher 's unique leadership style Kelleher 's leadership style created a unique positioning strategy for the company and as a result

the company was able to build a unique image in the industry . This image was based on the Southwest spirit which was based on customer service that was unmatched in the industry (cited in Fred , 2006 . The company had managed to achieve this position because of an organizational culture that aligned employee interests to organizational interests . As a result , employee morale was high and the company boasted lowest the annual employee turnover in the industry

The company had a strong strategic focus . By 2002 , it had become one of the largest airlines in the United States but its growth strategies were firmly aligned to the original business model of short-haul point-to-point flights , a fleet consisting only of Boeing 737s , high frequency flights , low fares and no international flights . The effectiveness of this business model was maximized through the `no-frills ' approach which facilitated the implementation of the cost minimization strategy . For example , reserved seating was not offered and meals...