Topic > Case Study by Herb Kelleher on Southwest Airlines, Inc.

The strategy has been to appeal to travelers not of other airlines but of trains, buses and automobiles by providing the fastest yet least expensive service. To support the strategy, the company decided to fly only one type of aircraft, the Boeing 737, and to replace linear flight with the hub-and-spoke model. However, the main contributor to Southwest's success is its culture and its employees. “Your spirit,” Mr. Kelleher says, is “the most powerful thing of all.” Given the success of the CEO of Southwest Airlines, I think the job would be difficult due to the influences the founder has on the Company. However, “If you are the CEO of a company that sails with the wind and is a leader in its competitive race, it is a sign that your culture is in tune with your strategy. This makes your company much more likely to deliver consistent, attractive profitability and growth results” (Katzenback, J., & Aguirre, D.,