Case Study Southwest


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Case Study Southwest

  1. 1. Southwest Airlines
  2. 2. Southwest Airlines’ Mission Statement 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.
  3. 3. Herbert (Herb) D. Kelleher Executive Chairman of the Board SWA Board of Executives
  4. 4. SWA Board of Executives Gary C. Kelly Vice Chairman of the Board and Chief Executive Officer
  5. 5. SWA Board of Executives Colleen Barrett President
  6. 6. In 2002, Southwest Airlines Emerges Into the New Generation With a New Corporate Logo
  7. 7. A Boeing 737-300 Aircraft in Southwest Airlines Historic Colors
  8. 8. Southwest's N ew P aint S cheme
  9. 9. SWA’s Strengths <ul><li>Finacial Stability </li></ul><ul><li>Record of Developing Underutilized Airports </li></ul><ul><li>Outstanding Record of Customer Satisfaction </li></ul><ul><li>Excellent Employee Relations </li></ul><ul><li>Commitment to Community Involvement </li></ul>
  10. 10. The Very First Advertisement in 1971
  11. 11. Two new &quot;airline-within-an-airline&quot; competitors faced off against Southwest in 1994. While other carriers may offer low fares on a handful of routes, only Southwest Airlines offers low fares on every seat of every flight, to every city we serve. Advertisement against United Airlines in 1994
  12. 12. Questions <ul><li>At the beginning, what forces in the environment most effected Southwest Airlines, and what opportunity was Southwest founded to take advantage of? </li></ul><ul><li>Forces: 1) Litigation by Barniff and Texas International </li></ul><ul><li> 2) CAB’s Jurisdiction to prevent competition in the state </li></ul><ul><li>Opportunity: To provide short – haul, intrastate service at a reduced fare on frequent flights to meet the needs of local travelers </li></ul>
  13. 13. Questions <ul><li>How would you chart the development of Southwest’s business – level strategy over time? </li></ul><ul><li>1971 Establishment </li></ul><ul><li>1973 - Ten – Minute Turnaround </li></ul><ul><li>- Half – Price Fare </li></ul><ul><li>- Premium Liquor Attached </li></ul><ul><li>1979 Expansion - An Interstate Airline </li></ul><ul><li>- Houston – New Orleans </li></ul><ul><li>1989 Expansion into California </li></ul><ul><li>1991 Expansion into Chicago </li></ul><ul><li>1996 Expansion into Florida </li></ul>
  14. 14. Questions <ul><li>What kinds of dynamics characterize competition in the airline industry? </li></ul><ul><li>แรงขับเคลื่อนใดที่เป็นตัวกำหนดลักษณะการแข่งขันของอุตสาหกรรมการบิน </li></ul><ul><li>1) Air Fare </li></ul><ul><li>2) Service </li></ul><ul><li>3) Flight’s Frequency and Punctuality </li></ul><ul><li>4) Immediate Reaction of the Competitors </li></ul>
  15. 15. Questions <ul><li>What do you think the future holds for Southwest? </li></ul><ul><li>Optimistic: </li></ul><ul><li>- Grow rapidly and stably within the United States </li></ul><ul><li>- Become “World Wide Airline” </li></ul><ul><li>- Get more online customers </li></ul><ul><li>Pessimistic: </li></ul><ul><li>- Earning might be affected by oil price and terrorism </li></ul><ul><li>- More competitors </li></ul>
  16. 16. Quarterly Balance Sheet 2004
  17. 17. Cities, States, and Airports
  18. 18. Stop Searching. Start Traveling
  19. 19. Welcome to SOUTHWEST AIRLINES SPIRIT® magazine online. SOUTHWEST AIRLINES SPIRIT magazine blends energetic travel reporting with diverse, trend-charting topics from the worlds of business, technology, sports, culture, and the arts. Hip profiles of hot personalities in a variety of disciplines provide an irreverent counterpoint to the practical, life-enhancing insiders' guides assembled to serve both business and leisure travelers.