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Southwest Airlines

Southwest Airlines Ppt

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Hi I am Pradeepta , This is my first ppt on SWA, it will be followed by another 3 ppt , i will upload all after giving my presentation, THANKS

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Page 1: Southwest Airlines Ppt

Southwest Airlines

Page 2: Southwest Airlines Ppt

Presented bySamrat

Narayan

Chandana

Pradeepta

Page 3: Southwest Airlines Ppt

History of Southwest Airlines

On February 20, 1968 the Texan Aeronautical Commissions approved plans to fly in 3 states, the c5eators are Rollin King and Herb Kelleher

Expanded through 1980’s to 1990’s by 1993 Southwest Airlines could fly in 34 states in 15 states

They also expanded into new destinations California, Northwest, Florida, East Coast

The competitors could not keep up, “500 pound cockroach that was too big to stamp out:

While the airfare was dropping the traffic went up tremendously, in 1994 United started a shuttle service, the large air carriers were feeding traffic into transpacific and transcontinental routes, they could not keep up

Was the first airline to achieve the Triple Crown, they had five difference Triple Crown dedicated to the Employees of Southwest Airlines for their excellent achievements.

Page 4: Southwest Airlines Ppt

Vision and Mission

Vision To have a conservative increase growth, capitalize and cutback

schedules of other airlines. To continue expanding conservatively in long-haul success

Mission The mission of Southwest Airlines is dedication to the highest

quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit. To give ordinary people the opportunity to fly.

To the employees We are committed to provide our Employees a stable work

environment with equal opportunity for learning and personal growth. Creativity and innovation are encouraged for improving the effectiveness of Southwest Airlines. Above all, Employees will be provided the same concern, respect, and caring attitude within the organization that they are expected to share externally with every Southwest Customer.

.

Page 5: Southwest Airlines Ppt
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Goals and Objectives

Ensure highest quality Customer Service in the air or on the ground.

Ready to help customers under any circumstances.

Are there to ensure you make it from point A to point B safely

To stay the most successful with low-fare, high frequency point-to-point carrier.

Page 7: Southwest Airlines Ppt

Corporate Culture

Tickets must be bought from the airline itself, the phone or online

Extra Rapid Rewards - frequent flier program- credits for online booking users only

Customers are assigned to a boarding group depending on check-in time - find their own seats on the plane

Colorful boarding announcements and crews that burst out in song instead of no video entertainment

Meal service is less than on historically full service airlines

Page 8: Southwest Airlines Ppt
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Conditions for price discrimination

A firm must have some market power to price discriminate The demand curve the firm faces must be

downward sloping Southwest knows that it can attract more

customers at lower fare price The firm must have some information about the

different amounts people will pay for its product. Southwest must know how reservation prices or

elasticity of demand differ across consumers A firm must be able to prevent resale, or arbitrage.

Customers need to present an identity card before boarding

Page 13: Southwest Airlines Ppt

External Opportunities and Threats

Opportunities First airline on the web Only in 58 cities –

expansion to other cities Lowest cost-preavailable-

seat out of all airlines Booked online 13.6%

more than American Airlines

Top-ranked website in customer satisfaction among travel sites

Threats Jet Blue Competitors caught SW

strategy New Tax System New Security measures Aviation insurance

costs Terrorists Attacks Severe decrease in

customer air travel

Page 14: Southwest Airlines Ppt

Internal Strengths and Weaknesses

Strengths Best low-fare carrier Triple Crown for annual

performance Quickly seize a strategic

opportunity when arises “Team Spirit” Employees

come 1st not customers Made 20% of flights to

one stop Even though Unionized

still negotiate flexible work hours

Marketing on the web, 50% revenue from online booking

Weaknesses Conservative Growth

Tactics Cuts cost in customer

service areas Not subscribed to

centralized reservation service

Other Co.’s now using same management strategies since found out about SW Airlines

Provides service in only 58 cities

Page 15: Southwest Airlines Ppt

Why should I go by Southwest Why should I go by Southwest AirlinesAirlines

Hire Attitude – Train Skills Hire Attitude – Train Skills Immerse Everyone in the Culture Immerse Everyone in the Culture

ImmediatelyImmediately Keep 'Em LearningKeep 'Em Learning People Give as Good as They GetPeople Give as Good as They Get Find the Kid in EveryoneFind the Kid in Everyone Do More with LessDo More with Less Luv 'Em in Tough TimesLuv 'Em in Tough Times Do What's Right Do What's Right Nurture the Corporate Family Nurture the Corporate Family

Page 16: Southwest Airlines Ppt

Why should I work ?

FUN emphasized!

Family emphasized! - Caring for employees emphasized! - Customers emphasized! - Identify with fellow employees (as internal customers!) - Ten-year Labor agreement! (81% unionized) - Aggressive under-dog spirit!

Employees “Love” to work there!!

Page 17: Southwest Airlines Ppt

Southwest’s Values, Philosophy, and Spirit

These are three basic values (“the culture”) or philosophical pillars at Southwest Airlines:

Value 1: Work should be fun ...it can be play . . . Enjoy it.

Value 2: Work is important ...don’t spoil with seriousness.

Value 3: People are important...each one makes a different.

Beliefs: Organizations are transparent Family and “Hugs”

Page 18: Southwest Airlines Ppt

People at Southwest

- Hard-working (94 employees per plane vs.. Americans 160 and United 160 - Industry average of 130; serves 2,500 passengers per employee Vs. United and American average less than 1,000)

- Motivated

- Have FUN - fun place to work

- Treat employees as internal customers

- Employees are comfortable

- Fundamental business philosophy is that employees come first!

- Not a lot of employees!

Page 19: Southwest Airlines Ppt

South-West Airlines

o Competitive advantageo Internal customerso Leadershipo Work-cultureo Management styleo Trusto Family spirit

To be cont…

Page 20: Southwest Airlines Ppt

South-West Airlines

•Open sharing of information•Training•Collective bargaining•Flexibility•Discounted stock purchase•Creative spirit•Lay-offs

Page 21: Southwest Airlines Ppt

Why is Southwest Successful?

Because of its Internal Business Environment and/ or Execution Systems—the Causes:Culture, Core Values, Philosophies and

Principles (Vision Direction)Effective Management of its Workplace

(Level 5 leadership)Effective Exemplar Structures, Systems

and Processes (fit between elements of the Execution System)

Page 22: Southwest Airlines Ppt

Integrated Low Cost/Differentiation Strategy

Low Cost Use a single aircraft

model (Boeing 737) Use secondary airports Fly short routes No meals 15 minute turnaround

time No reserved seats No travel agent

reservations

Differentiation Focus on customer

satisfaction High level of employee

dedication New flight services for

business travelers (phones and faxes) S.W.A.’s Culture,

Values, Philosophies & Principles