Southwest Airlines prioritizes putting employees first so they can provide excellent customer service. Their mission is to deliver high-quality customer service with warmth and friendliness. Southwest operates over 500 Boeing 737 aircraft on more than 3,300 daily flights among 58 cities in the US. It has over 35,000 employees and has achieved profitability for 36 consecutive years, being recognized frequently for its innovative culture and top customer satisfaction.

1. PRESENTED BY
GROUP-5
SARVPREET BHATTI-169
MANPREET SINGH-151
GOLDI-137
ATUL VIKAS-159
KUMAR ASHISH-171
RAVI KUMAR- 136

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.  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

5.  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

6. 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

7. .
humour
• Work should be fun ...it can be play . . .
Enjoy it.
• Both at workplace and inside the plane
altruism
• Work is important ...don’t spoil with
seriousness.
• Welfare of people comes first
luv
• People are important...each one makes
a different.
• Employee and customer commitment

8. SUCCESS IS HOW HIGH YOU BOUNCE WHEN
YOU HIT BOTTOM
WHY IT IS SUCCESSFUL ?

9. WHY IT IS SUCCESSFUL ?
Competitive advantage
Internal customers
Management style
Leadership
Work-culture
Family spirit
Trust

10. •Open sharing of information Training
Collective bargaining
Flexibility
Discounted stock purchase
Creative spirit

11. • People consider it as crusade instead of
business.
• Most glowing star in southwest policy.
WORK CULTURE
• Eagerness to be at the top.
• Challenges top competitors as US
AIR,UNITED, DELTA
COMPETITIVE
ENVIRONMENT
• CEO HERB KELLEHER played major
role with his unique mgmt style.
• Team of PARKER, COLLIN to handle .
LEADERSHIP

12. 4
• Trust of customers declared it as most
admired airlines and company.TRUST
•Respects ideas of employees.
• Committee of managers, employee
interaction.
OPEN SHARING
OF INFORMATION
•Respect for sense of humor.
• Compatible attitude of learning.
CREATIVITY
SPIRIT

13. • Government
regulations and
restrictions
• Fluctuation in
gas and oil prices
• Operate At
International
Level
• Focus On
Popular
Destinations
•No international
flight.
•Carry small amout
of freight and
cargo.
•Inconvenience to
business customers
• Employee
satisfaction
• Customer service
• Low fares
• Stable profitability
• Scheduled service
• Leadership
Strengths Weakness
ThreatsOpportunity

15.  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

16.  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

17. PRICE ELASTICITY OF DEMAND
The percentage change in quantity demanded (Q)
that occurs in response to a percentage change in
price (P)

18.  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.

19.  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