Southwest Airlines Complete


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Southwest Airlines Complete

  1. 1. Presented By: -<br />MehakKohli: SMBA 08116<br />PrafulAnchaliya: SMBA 08155<br />Rohit Jain: SMBA 08189<br />SheetalVishnoi: SMBA 08216<br />
  2. 2. History of Southwest<br />1971-1994:<br />Unique low cost carrier is born<br />Golden Triangle (Dallas-Houstan-San Antonio)<br />Ten minute turn around time<br />Spreading on the “LUV” theme<br />Self-ticketing machines<br />Over 22 aircrafts<br />Ranked no. 1 in customer satisfaction<br />Wins the 1st monthly & later on annual Triple Crown<br />Introduces Ticketless Travel in 4 cities.<br />
  3. 3. ORGANIZATIONAL CULTURE<br />“Doing the Right Thing”<br />Mission:<br /> “Dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit.”<br />
  4. 4. SOUTHWEST SPIRIT<br />Warrior Spirit<br />Work hard<br />Desire to be the best<br />Be courageous<br />Display a sense of urgency<br />Persevere<br />Innovate<br />Servant’s Heart<br />Follow the Golden Rule<br />Adhere to the Basic Principles<br />Treat others with respect<br />Put others first<br />Be egalitarian<br />Demonstrate proactive Customer Service<br />Embrace the SWA Family<br />
  5. 5. SOUTHWEST SPIRIT<br />Fun-LUVing Attitude<br />Have FUN<br />Enjoy your work<br />Celebrate successes<br />Maintain perspective (balance)<br />Be a passionate Team player<br />Don’t take yourself too seriously<br />
  6. 6. CASM Analysis<br /> (1976-2005)<br />
  7. 7. Strategy Map<br />Hiring & Selection<br />-Hire for Attitude<br />-Humor taken Seriously<br />Success<br />-Customer Satisfaction<br />-Increased Revenue<br />-Employee retention<br />-Productivity<br />Organization Strategy<br />Mission: Dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit<br />Motivation<br />-Hygiene Factors<br />--Profit Sharing and 401(k)<br /> --Safety Standards<br />--Flexible healthcare benefits<br />--Job security <br /> --Stock purchase plan <br /> --Life insurance<br /> --Paid Time Off<br /> <br />-Motivators<br />--Responsibility<br />--Ownership<br />--Recognition and awards<br />--Employee Initiative<br />--Equal Employment<br />--Opportunities<br />Training & Development<br />-Orientation- fun activities<br />-Ongoing advanced employee training <br />-Mentorship Program for new hires<br />-Departmental trainings<br />Employee Behavior & Competencies<br />-Right Competence<br />-Quality Focused and Committed Workforce<br />-Attractive Workplace<br />-Participation encouraged<br />-High employee Morale<br />-Respect and Trust<br />Performance Management <br />-SWA Magic Numbers<br />“Knowing the Score” Program<br />-Employees Incentive Bonus Plan<br />
  8. 8.
  9. 9. Competitive Analysis<br />Substitutes<br />1. Brand competitionContinental Airlines and American Airlines<br />2. Generic competition train (Amtrak) and bus(Greyhound) <br />Suppliers<br /> Maintenance People <br />Fuel Providers<br />Food Providers<br />Rivalry<br />Jetblue<br />Competitors<br />Braniff, United Shuttle, Delta, Trans<br />Customers<br />Leisure travellers, Businessman, College Students<br />
  10. 10. VALUES : 5 F’s<br />Flamboyance<br />Freedom<br />Fun<br />Freshness<br />Family<br />
  11. 11. Radio ad for Southwest<br />
  12. 12. A FAQ<br />
  13. 13. Children in ‘LUV’<br /><ul><li>Designed for leisure travelers
  14. 14. Frequent sing-a-long and warmth put forth by the flight staff</li></li></ul><li> SUCCESS STORIES<br />Major airline to make profits(1990,1991 and 1992)<br />Fewest Customer Complaints<br />Ranked one in the airline industry<br />Ranked second across industry<br />More passengers, fewest employees<br />Investment grade credit rating<br />
  15. 15. SWOT<br />Strengths<br />Opportunity<br />Weakness<br />Threats<br /><ul><li> Competitor - Jet Blue Airlines
  16. 16. Internet reliance - Risks (system disruption)
  17. 17. No frills -> limit frills - Increase operation cost
  18. 18. Fast Turnaround
  19. 19. Committed Workforce
  20. 20. Strong Management Team
  21. 21. Focus on PSP(People-Service-Profit)!!!
  22. 22. Competitive Advantage
  23. 23. First Mover Advantage
  24. 24. Weaker Competitors
  25. 25. International Expansion
  26. 26. Take up routes abandoned by competitors
  27. 27. Long haul flight - Tap undeveloped market
  28. 28. Dominant position -Offers pricing power
  29. 29. High fuel prices – Exit of unprofitable competitors
  30. 30. Fully valued Share Price
  31. 31. Limited Alliances</li></li></ul><li>Southwest’s Performance<br />Only major US airline in 1990, 91, 92 to make both net & operating profits<br />Averaged more than 12% return on investment & 23.6% return to shareholders<br />One of the few airlines in the world with an investment grade credit rating<br />Ranked first in the airline industry in fortune magazine’s 2002 America’s Most Admired Companies list<br />
  32. 32. RECOMMENDATIONS<br />Continued Gradual Expansion<br />Maintain their success story<br />No Internationalization<br />
  33. 33. THANK YOU<br />