Title: SOUTHWEST AIRLINE
1 The Ultimate Managers
2SOUTHWEST AIRLINES
The Freedom to Fly
Designed by Hamid Hussain Being a part of this
Family is the best!
Presented by The Ultimate Managers
3The Southwest Background
4Company Overview...
Background
- major domestic airline that provides
- primarily short haul
- high-frequency
- point-to-point
- low-fare service
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.
5Target Market
- First-time Fliers
- Business Travelers (Point to Point)
- Dissatisfied customers from full-service
airlines - People who travel by Road Rail
- Leisure family travelers
Background
Strategy
Impact
Analysis
6Business 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.
7The Southwest Background
Background
- Motivation
- demand for routes between major Texas cities
- Mission
- dedication to the highest quality of customer
service delivered with a sense of warmth
friendliness individual pride and company spirit
Strategy
Impact
Analysis
8S
W
O
T
9S-W-O-T Analysis ...
- Strengths
- Low price tickets
- Low operating costs
- Good customer service
- High frequency service
- Productive pilots ground crews
- Weakness
- Doesnt serve international flights
- One type of airplane
- Opportunities
- Ability to add scheduled flights
- Low prices enable market share
- growth
- Threats
- Big companies emulate
- Southwests low cost model
- Difficulty securing new gates at
- existing airports
10(No Transcript)
11Building Capable Organization ...
Staffing the Organization
Southwests Capability
Core Competencies and Competitive Capabilities
Matching the Organization Structure to Strategy
12Staffing ...
- 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
13Core 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
14Core 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
15 Key Success Factors (Low Cost Carrier Industry)
- Low Fares
- More destinations
- Operational Efficiency
- Turn Around Time
- Aircraft Utilization
- On time Performance
- Service Standards (Basic)
- Safety
Background
Strategy
Impact
Analysis
16Company Values ...
- LUV
- Code word for treating individuals employees
customers - Dignity respect and caring loving attitude.
- Appeared on banners and posters at company
facilities
Core Values
- Fun
- 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
17The Southwest Background
Background
- Fun
- 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
18LEAD
19SOUTHWEST vs AIRLINE INDUSTERY
20Airline Business Modal
Background
Airlines typically follow two types of business
models
Strategy
- THE POINT TO POINT
- THE HUB-AND-SPOKE
Impact
Analysis
21Southwest Analysis
Background
Strategy
Impact
Analysis
22Southwest 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
23Market Share (US Airline Industry)
24Southwest Analysis
Background
Strategy
Impact
Analysis
- Intra competitors
- Braniff International Airways Trans Texas
Airways and People Express - Inter competitors
- Continental Lite United Shuttle Delta Express
US Airways MetroJet
25Southwest Analysis
Background
Strategy
Impact
Analysis
- Ticketing System Company
- Boeing 737
- Fuel Company
- Snacks Company
- Beverage Company
26Southwest Analysis
Background
Strategy
Impact
Analysis
- Businessman
- College Students
27Southwest Analysis
Background
Strategy
Impact
Analysis
28Southwest Analysis
Background
Strategy
Impact
Analysis
29The Impact of the Event of 9/11
309/11 Impacts ...
31Future 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.
32I have a question....
33Thank You!
The Ultimat
Managers