Strategic Management 1

Read:

Review,Case HarvardBusiness   Gavetti and Rivkin, “How Strategists Really Think,  Southwest Airlines 2002: An Industry Under Siege

Southwest Airlines 2002: An Industry Under Siege

Few companies have gained as much notoriety in recent years as has Southwest Airlines.  Some of that notoriety has been due to the often unconventional behavior of their CEO Herb Kelleher, while other stems from their unbroken stream of profitability.  Many observers of organizations have studied Southwest in an attempt to learn what has made them so successful.  We will be no exception.

However, not only will we try to determine the source of their historical success, we will grapple with the unique set of challenges that they face due to the events of September 11th , the rise of low cost competitors, and the subsequent restructuring of the airline industry. 

Preparation Questions: 

1. Why has Southwest Airlines been so successful?
2. To what extent have the post 911 changes in the industry disproportionately helped or hurt Southwest
3. What is your prognosis for the continued success of Southwest Airlines? 
4. What are the factors most critical to determining that success?