Southwest airlines ppt


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Southwest airlines ppt

  1. 1. SOUTHWEST AIRLINES<br />Presented by<br />GROUP-5<br />SARVPREET BHATTI-169<br />MANPREET SINGH-151<br />GOLDI-137<br />ATUL VIKAS-159<br />KUMAR ASHISH-171<br />RAVI KUMAR- 136<br />
  2. 2. Southwest Airlines<br />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.<br />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.<br />MISSION<br /> 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. <br />
  3. 3. <ul><li>Incorporated in Texas in U.S. by Herb Kelleher and Rollin king in 1971
  4. 4. Commenced customer service with 3 boeing 737 aircraft
  5. 5. Now operates more than 500 boeing 737 aircraft
  6. 6. Operate more than 3300 flights a day
  7. 7. 35000 employees engaged
  8. 8. The United States’ most successful low-fare, high frequency, point-to-point carrier
  9. 9. Known as a “discount airline” since 1973</li></ul>INTRODUCTION<br />
  10. 10.
  11. 11. <ul><li>For the 12th year in a row, FORTUNE magazine recognized Southwest Airlines in its annual survey of corporate reputations in 2008.
  12. 12. 2003 Selected as “AIRLINE FOR THE YEAR”
  13. 13. 2007 included in top 100 most innovative technology organization
  14. 14. First airline to establish a home page on internet
  15. 15. Ranked number one in customer service
  16. 16. 36 consecutive year of profitability</li></ul>ACHIEVEMENTS<br />
  17. 17. leadership<br />Defined as:<br /> “art of motivating a group of people to act towards achieving a common goal” <br /> According to HERB KELLEHER<br /><ul><li>Leadership is a way of life, culture, desire and commitment
  18. 18. Leadership is the job of every employee, not just upper level management
  19. 19. Every employee should have the ability to ascertain situations and be able to act on their own decision
  20. 20. Employees should be able to lead other employees to make decisions
  21. 21. He does not rule over his employee but rather, rules with his employees</li></li></ul><li>Southwest’s Values, Philosophy, and Spirit<br />. <br />
  22. 22. Success is how high you bounce when you hit bottom<br /> Why it is successful ?<br />
  23. 23. Why it is successful ?<br />Competitive advantage<br /> Internal customers<br />Management style<br /> Leadership<br /> Work-culture<br />Family spirit <br /> Trust<br />
  24. 24. <ul><li>Open sharing of information Training</li></ul>Collective bargaining<br /> Flexibility<br /> Discounted stock purchase<br /> Creative spirit<br />
  25. 25.
  26. 26. 4<br />
  27. 27. swot<br />
  28. 28. Inverted pyramid approach<br />
  29. 29. strategies<br />Integrated Low Cost/Differentiation Strategy<br /><ul><li>Use a single aircraft model (Boeing 737)
  30. 30. Use secondary airports
  31. 31. Fly short routes
  32. 32. Low cost meals
  33. 33. 15 minute turnaround time
  34. 34. No reserved seats
  35. 35. No travel agent reservations</li></li></ul><li>PROFITABILITY<br /><ul><li>Fuel hedging
  36. 36. Purchased fuel options for years in advance to smooth out fluctuations in fuel costs
  37. 37. Substantially increased its hedging in 2001 in response to projections of increased crude oil prices
  38. 38. Advantaged after Sep. 11, 2001 attack, the oil shock from Iraq War, and Hurricane Katrina
  39. 39. Operated only one model of aircraft
  40. 40. Boeing 737, medium range-narrow body commercial passenger jet aircraft
  41. 41. Easy to replace parts and ground support equipment </li></li></ul><li>Price elasticity of demand <br /> The percentage change in quantity demanded (Q) that occurs in response to a percentage change in price (P)<br />PRICE DISCRIMINATION STRATEGY<br />
  42. 42. Third-Degree Price Discrimination <br />The firm identifies different consumer groups, in the market, each with a different demand curve. <br /><ul><li>Southwest Airlines recognizes that any given flights has different types of travelers
  43. 43. Business travelers vs. Vacation travelers</li></ul>To maximize profit, the firm sets a price for each group by equating marginal revenue and marginal cost. <br />
  44. 44. Southwest Airlines uses third-degree price discrimination to fill the plane with travelers in the most profitable way<br />Depending on the price of elasticity of demand for tickets<br /><ul><li>Charge a higher price for business travelers who have relatively inelastic demands and vice versa </li></ul>Employee and customer satisfaction<br />CONCLUSION<br />