“Clarity of mind means clarity of passion, too.”
— Blaise Pascal
A Clear Eye.
On marketplace success
by Tom Asacker
“Clarity of mind means clarity of passion, too.”
— Blaise Pascal
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"One may miss the mark by aiming too low as too high."
What is the Southwest Airline's brand? Low prices: achieved primarily through a strategic focus on standardization, use of technology, reduced levels of service, fuel cost hedging, and employee productivity (read multitasking and relatively low wages). Don't even try telling me that it has anything to do with their friendly service.
It should come at no surprise that Gary Kelly (Southwest's CFO), has replaced James Parker as CEO. Parker, 57, announced his sudden retirement last week after only three years in what he called a "draining" job. Why? Because it wasn't too difficult for newer competitors like Song, jetBlue, TED, et al, to create their own low-price brands and grab some of Southwest's "loyal" customers. Parker, therefore, had no brand leverage to raise prices. And with falling margins and a two-year dispute with the flight attendants' union, Parker couldn't see an easy way out. Neither can I. I guess Herb Kelleher picked the right time to call it quits, huh?
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