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Entrepreneurship 675 views Nov 06, 2018
What you stands for

I had the opportunity to speak to Southwest Airlines a  few months ago, They told me consultants suggested they charge passengers to check luggage since the competition was doing it and southwest could make a lot more money with this additional source of revenue. Southwest considered their proposal, but in the process asked themselves an important question: is what we stands for? they went straight to their purpose statement:" To connect people to whats important in their lives through friendly, reliable, and low-cost air travel." They ultimately decided that if they were focused on everyday fliers and low cost air travel, they shouldn't charge baggages fees.

You might think they missed out on a lot of money because of their decision, but a funny thing happened. Southwest started to get a new customers because the airline didn't charge for checked bags, they ran advertising campaigns highlighting the fact that #Bags fly free, and they gained market share in the process. Their revenue grew to new heights, that its a great example to illustrate that once you what you stand for, decisions are easy to make. When your culture dictates your decisions, you are on the right path to successful results.  

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