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Kelleher Stayed Focused on Core Purpose

Another key competitive advantage that Kelleher added to Southwest (LUV) was that he stayed focused on the core purpose of the company. This was actually unique in the airline business.

A number of their competitors like United and American Airlines went off into all types of non-core areas that took their eye off of the reason for being in business.

Some examples are going into things like reservations systems and car rentals, which rather than adding to the companies, actually ended up draining the companies of both focus and resources.

As a result, Southwest grew almost entirely organically. They simply stayed focused on their core business and kept up on what their customers were saying to them. They were the envy of the industry because of this, and because everything within the business was integrated, along with its unique culture, has been impossible to copy.

It's amazing how many billion dollar companies, and others, continue to make the mistake of going off of their purpose again and again. The ones that finally learn always end up saying something like "we're going back to what made us who we are." It's too bad they forgot in the first place.

Other Herb Kelleher Sources:

Special Event

Leadership: The Essential Herb Kelleher

The CEO as Brand Guardian

Herb's way

Speeches and Presentations from Southwest Leaders

Southwest Airlines: The Hottest Thing in the Sky

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