The Ultimate Managers 2 SOUTHWEST AIRLINES The Freedom to Fly
Designed by Hamid Hussain Being a part of this Family is the best! Presented by The Ultimate Managers 3 The Southwest Background 4 Company Overview... Background
major domestic airline that provides
primarily short haul
Strategy Impact Analysis The third-largest airline in the world by number of passengers carried and the largest in the United States by number of passengers carried domestically. 5 Target Market
Business Travelers (Point to Point)
Dissatisfied customers from full-service airlines
People who travel by Road Rail
Leisure family travelers
Background Strategy Impact Analysis 6 Business Description ... Geographical Segmentation Southwest flies to 62 cities in 32 states in America In selecting cities Southwest looked for city pairs that could generate substantial amounts of both business and leisure traffic. 7 The Southwest Background Background
demand for routes between major Texas cities
dedication to the highest quality of customer service delivered with a sense of warmth friendliness individual pride and company spirit
Strategy Impact Analysis 8 S W O T 9 S-W-O-T Analysis ...
Low price tickets
Low operating costs
Good customer service
High frequency service
Productive pilots ground crews
Doesnt serve international flights
One type of airplane
Ability to add scheduled flights
Low prices enable market share
Big companies emulate
Southwests low cost model
Difficulty securing new gates at
10 (No Transcript) 11 Building Capable Organization ... Staffing the Organization Southwests Capability Core Competencies and Competitive Capabilities Matching the Organization Structure to Strategy 12 Staffing ...
Employee come first and Customers come second
Putting Together a Strong Management Team
Developing leadership and communication skills for low level management
Up and Coming Leaders received training in every departments over sixth-month period
Hired employee for attitude and trained them for skills
Analyzed each job category to determine the specific behaviors knowledge and motivations that job holders needed and with the desired traits
A trait common to all job categories was teamwork
13 Core Competencies Competitive Capabilities ...
Developing a set of competencies and capabilities
Low Operating Cost
Operate one type of aircraft.
Make reservations and purchase tickets at the companys website.
Tried to steer clear of congested airports stressing instead serving airports relatively near major metropolitan areas and in medium-sized cities.
Using point-to-point scheduling of flights.
There is no reserved seat for each passenger.
No first class section no fancy clubs at terminal and no meals.
No baggage transfer services to other carriers.
Convert from cloth to leather seats
14 Core Competencies Competitive Capabilities ...
Developing a set of competencies and capabilities
Focus on Customer Customer Satisfaction
Make sure passengers had a positive fun flying experience.
Presenting a happy face to passengers and displaying a fun loving attitude.
Complaint letters were seen as learning opportunities for employees and reasons to consider making adjustments
Background Strategy Impact Analysis 16 Company Values ...
Code word for treating individuals employees customers
Dignity respect and caring loving attitude.
Appeared on banners and posters at company facilities
Entertaining behavior of employees in performing their jobs.
The ongoing pranks and jokes.
Frequent company-sponsored parties and celebrations.
gt charity benefit games chili cook-offs Halloween parties
17 The Southwest Background Background
e.g. announcements to passengerssang in-flight contests holiday celebration
Emphasized the selection of employees who could be empathic and bring pleasing personalities to the job
Strategy Impact Analysis 18 LEAD 19 SOUTHWEST vs AIRLINE INDUSTERY 20 Airline Business Modal Background Airlines typically follow two types of business models Strategy
THE POINT TO POINT
Impact Analysis 21 Southwest Analysis Background
Strategy Impact Analysis 22 Southwest Analysis Background Market Share US Low Cost carrier (LCC) Industry Strategy Impact Analysis Southwest Airlines is by far the largest Low Cost Carrier in the US market 23 Market Share (US Airline Industry) 24 Southwest Analysis Background Strategy Impact Analysis
Braniff International Airways Trans Texas Airways and People Express
Continental Lite United Shuttle Delta Express US Airways MetroJet
29 The Impact of the Event of 9/11 30 9/11 Impacts ... 31 Future Improvements ...
It is essential for Southwest Airlines to expand on their existing achievements.
Better serve customers by improving their routing system.
Offering enhanced accessibility and minimizing delays.
32 I have a question.... 33 Thank You! The Ultimat Managers
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