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PRESENTED BY
GROUP-5
SARVPREET BHATTI-169
MANPREET SINGH-151
GOLDI-137
ATUL VIKAS-159
KUMAR ASHISH-171
RAVI KUMAR- 136
SOUTHWEST AIRLINES
If you get your passengers to their destinations when they
want to get there, on time, at the lowest po...
Incorporated in Texas in U.S. by Herb Kelleher
and Rollin king in 1971
 Commenced customer service with 3 boeing
737 airc...
For the 12th year in a row, FORTUNE
magazine recognized Southwest Airlines in
its annual survey of corporate reputations i...
Defined as:
“art of motivating a group of people to act towards achieving
a common goal”

According to HERB KELLEHER


...
.

• Work should be fun ...it can be play . . .
Enjoy it.
humour • Both at workplace and inside the plane
• Work is import...
SUCCESS IS HOW HIGH YOU BOUNCE WHEN YOU HIT
BOTTOM

WHY IT IS SUCCESSFUL ?
WHY IT IS SUCCESSFUL ?
Competitive advantage
Internal customers

Management style
Leadership

Work-culture
Family spirit
T...
•Open sharing of information

Training

Collective bargaining
Flexibility
Discounted stock purchase

Creative spirit
WORK
CULTURE
COMPETITIVE
ENVIRONMENT

LEADERSHIP

• People consider it as crusade instead of
business.
• Most glowing star...
4

TRUST

OPEN SHARING OF
INFORMATION

CREATIVITY SPIRIT

• Trust of customers declared it as most
admired airlines and co...
• Employee
satisfaction
• Customer service
• Low fares
• Stable profitability
• Scheduled service
• Leadership

• No inter...


Integrated Low Cost/Differentiation
Strategy

Use a single aircraft model (Boeing 737)
Use secondary airports
Fly sh...
 Fuel

hedging



Purchased fuel options for years in advance to smooth
out fluctuations in fuel costs
 Substantially i...
PRICE ELASTICITY OF DEMAND
The percentage change in quantity demanded (Q)
that occurs in response to a percentage change i...
 The

firm identifies different consumer groups, in
the market, each with a different demand curve.


Southwest Airlines...
Southwest Airlines uses third-degree price
discrimination to fill the plane with travelers in the
most profitable way
 De...
Southwestairlinesppt 110102120609-phpapp01
Southwestairlinesppt 110102120609-phpapp01
Southwestairlinesppt 110102120609-phpapp01
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Transcript of "Southwestairlinesppt 110102120609-phpapp01"

  1. 1. PRESENTED BY GROUP-5 SARVPREET BHATTI-169 MANPREET SINGH-151 GOLDI-137 ATUL VIKAS-159 KUMAR ASHISH-171 RAVI KUMAR- 136
  2. 2. SOUTHWEST AIRLINES If you get your passengers to their destinations when they want to get there, on time, at the lowest possible fares, and make darn sure they have a good time doing it, people will fly your airline. You put your employees first. If your employees are treated right , they will treat your customers right, your customers will come back, and that’s what makes your shareholders happy. 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. It primarily provides short haul, high-frequency, point-to-point, low-fare air transportation service among 58 cities (59 airports) in the United States.
  3. 3. Incorporated in Texas in U.S. by Herb Kelleher and Rollin king in 1971  Commenced customer service with 3 boeing 737 aircraft  Now operates more than 500 boeing 737 aircraft  Operate more than 3300 flights a day  35000 employees engaged  The United States’ most successful low-fare, high frequency, point-to-point carrier  Known as a “discount airline” since 1973 
  4. 4. For the 12th year in a row, FORTUNE magazine recognized Southwest Airlines in its annual survey of corporate reputations in 2008.  2003 Selected as “AIRLINE FOR THE YEAR”  2007 included in top 100 most innovative technology organization  First airline to establish a home page on internet  Ranked number one in customer service  36 consecutive year of profitability 
  5. 5. Defined as: “art of motivating a group of people to act towards achieving a common goal” According to HERB KELLEHER      Leadership is a way of life, culture, desire and commitment Leadership is the job of every employee, not just upper level management Every employee should have the ability to ascertain situations and be able to act on their own decision Employees should be able to lead other employees to make decisions He does not rule over his employee but rather, rules with his employees
  6. 6. . • Work should be fun ...it can be play . . . Enjoy it. humour • Both at workplace and inside the plane • Work is important ...don’t spoil with seriousness. altruism • Welfare of people comes first luv • People are important...each one makes a different. • Employee and customer commitment
  7. 7. SUCCESS IS HOW HIGH YOU BOUNCE WHEN YOU HIT BOTTOM WHY IT IS SUCCESSFUL ?
  8. 8. WHY IT IS SUCCESSFUL ? Competitive advantage Internal customers Management style Leadership Work-culture Family spirit Trust
  9. 9. •Open sharing of information Training Collective bargaining Flexibility Discounted stock purchase Creative spirit
  10. 10. WORK CULTURE COMPETITIVE ENVIRONMENT LEADERSHIP • People consider it as crusade instead of business. • Most glowing star in southwest policy. • Eagerness to be at the top. • Challenges top competitors as US AIR,UNITED, DELTA • CEO HERB KELLEHER played major role with his unique mgmt style. • Team of PARKER, COLLIN to handle .
  11. 11. 4 TRUST OPEN SHARING OF INFORMATION CREATIVITY SPIRIT • Trust of customers declared it as most admired airlines and company. • Respects ideas of employees. • Committee of managers, employee interaction. • Respect for sense of humor. • Compatible attitude of learning.
  12. 12. • Employee satisfaction • Customer service • Low fares • Stable profitability • Scheduled service • Leadership • No international flight. • Carry small amout of freight and cargo. • Inconvenience to business customers Strengths Opportunity • Operate At International Level • Focus On Popular Destinations Weakness Threats • Government regulations and restrictions • Fluctuation in gas and oil prices
  13. 13.  Integrated Low Cost/Differentiation Strategy Use a single aircraft model (Boeing 737) Use secondary airports Fly short routes Low cost meals 15 minute turnaround time No reserved seats No travel agent reservations
  14. 14.  Fuel hedging  Purchased fuel options for years in advance to smooth out fluctuations in fuel costs  Substantially increased its hedging in 2001 in response to projections of increased crude oil prices  Advantaged after Sep. 11, 2001 attack, the oil shock from Iraq War, and Hurricane Katrina  Operated  only one model of aircraft Boeing 737, medium range-narrow body commercial passenger jet aircraft  Easy to replace parts and ground support equipment
  15. 15. PRICE ELASTICITY OF DEMAND The percentage change in quantity demanded (Q) that occurs in response to a percentage change in price (P)
  16. 16.  The firm identifies different consumer groups, in the market, each with a different demand curve.  Southwest Airlines recognizes that any given flights has different types of travelers  Business travelers vs. Vacation travelers  To maximize profit, the firm sets a price for each group by equating marginal revenue and marginal cost.
  17. 17. Southwest Airlines uses third-degree price discrimination to fill the plane with travelers in the most profitable way  Depending on the price of elasticity of demand for tickets  Charge a higher price for business travelers who have relatively inelastic demands and vice versa  Employee and customer satisfaction 
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