Southwest Airlines Case Study

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I decided to dedicate my research to a story of success of Southwest Airlines. The company managed to become a successful low-cost carrier, and is constantly looking for ways to improve and grow. The main questions that I would like to address here are:
1. What helped the company to become one of the leaders in the industry?
2. Analysis of company’s environment, and its relationships with different stakeholders
3. How does Southwest Airlines manage to keep the low costs and even reduce them?
Southwest Airlines was founded in 1967, and started its operations in 1971 in Texas. At first, it was operating between 3 major cities – Houston, Dallas and San Antonio. It grew with time, and, nowadays, is still considered the largest domestic air carrier in the United States. Its revenues have been increasing every year. Southwest has the lowest operating cost structure within domestic airline industry, and consistently offers the lowest fares.
The company is dedicated to improve relationships with customers, suppliers, shareholders and their own employees. Southwest was able to maintain the highest quality of customer service throughout all these years.
So what are the main success factors for the company, and how does it outperform its competitors? First, it was always flexible and understanding towards the customers, employees and everyone who was involved in the business. They were able to find simple answers to complicated questions. If we take a look at company’s website, we
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