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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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Southwest Airlines
Presented bySamrat
Narayan
Chandana
Pradeepta
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.
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.
.
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.
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
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
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
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
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
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!!
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”
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!
South-West Airlines
o Competitive advantageo Internal customerso Leadershipo Work-cultureo Management styleo Trusto Family spirit
To be cont…
South-West Airlines
•Open sharing of information•Training•Collective bargaining•Flexibility•Discounted stock purchase•Creative spirit•Lay-offs
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)
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