Southwest Airlines was founded in 1971 with a unique low-cost business model focused on quick turnarounds and customer satisfaction. It spread throughout the "Golden Triangle" region of Texas and emphasized a fun-loving culture. Southwest achieved great financial success in the 1990s and developed a reputation for excellent customer service. It continues to focus on low costs, high employee satisfaction, and putting customers first.

1. Presented By: -MehakKohli: SMBA 08116PrafulAnchaliya: SMBA 08155Rohit Jain: SMBA 08189SheetalVishnoi: SMBA 08216

2. History of Southwest1971-1994:Unique low cost carrier is bornGolden Triangle (Dallas-Houstan-San Antonio)Ten minute turn around timeSpreading on the “LUV” themeSelf-ticketing machinesOver 22 aircraftsRanked no. 1 in customer satisfactionWins the 1st monthly & later on annual Triple CrownIntroduces Ticketless Travel in 4 cities.

3. ORGANIZATIONAL CULTURE“Doing the Right Thing”Mission: “Dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit.”

4. SOUTHWEST SPIRITWarrior SpiritWork hardDesire to be the bestBe courageousDisplay a sense of urgencyPersevereInnovateServant’s HeartFollow the Golden RuleAdhere to the Basic PrinciplesTreat others with respectPut others firstBe egalitarianDemonstrate proactive Customer ServiceEmbrace the SWA Family

5. SOUTHWEST SPIRITFun-LUVing AttitudeHave FUNEnjoy your workCelebrate successesMaintain perspective (balance)Be a passionate Team playerDon’t take yourself too seriously

6. CASM Analysis (1976-2005)

7. Strategy MapHiring & Selection-Hire for Attitude-Humor taken SeriouslySuccess-Customer Satisfaction-Increased Revenue-Employee retention-ProductivityOrganization StrategyMission: Dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company SpiritMotivation-Hygiene Factors--Profit Sharing and 401(k) --Safety Standards--Flexible healthcare benefits--Job security --Stock purchase plan --Life insurance --Paid Time Off -Motivators--Responsibility--Ownership--Recognition and awards--Employee Initiative--Equal Employment--OpportunitiesTraining & Development-Orientation- fun activities-Ongoing advanced employee training -Mentorship Program for new hires-Departmental trainingsEmployee Behavior & Competencies-Right Competence-Quality Focused and Committed Workforce-Attractive Workplace-Participation encouraged-High employee Morale-Respect and TrustPerformance Management -SWA Magic Numbers“Knowing the Score” Program-Employees Incentive Bonus Plan

9. Competitive AnalysisSubstitutes1. Brand competitionContinental Airlines and American Airlines2. Generic competition train (Amtrak) and bus(Greyhound) Suppliers Maintenance People Fuel ProvidersFood ProvidersRivalryJetblueCompetitorsBraniff, United Shuttle, Delta, TransCustomersLeisure travellers, Businessman, College Students

10. VALUES : 5 F’sFlamboyanceFreedomFunFreshnessFamily

11. Radio ad for Southwest

12. A FAQ

13. Children in ‘LUV’Designed for leisure travelers

14. Frequent sing-a-long and warmth put forth by the flight staff SUCCESS STORIESMajor airline to make profits(1990,1991 and 1992)Fewest Customer ComplaintsRanked one in the airline industryRanked second across industryMore passengers, fewest employeesInvestment grade credit rating

15. SWOTStrengthsOpportunityWeaknessThreats Competitor - Jet Blue Airlines

16. Internet reliance - Risks (system disruption)

17. No frills -> limit frills - Increase operation cost

18. Fast Turnaround