...Southwest Airlines Corporation Question 1 : What is Southwest’s strategy? What is the basis on which Southwest builds its competitive advantage? One of the goals of the company is to achieve its goals which can be seen through the Vision. Southwest’s Vision “ To become the World’s Most Loved, Most Flown, and Most Profitable Airline” can be achieved by planning good strategy. Strategy is also needed in order to achieve Southwest’s goals and purpose, which is “To connect People to what’s important in their lives through friendly, reliable, and low-cost air travel”. The main strategy of Southwest is the capability of the company to manage and take advantage of its competitive advantage. Major competitive advantage of Southwest Corporation is its people, just like current CEO Gary Kelly said on company’s official website : “Our people are our single greatest strength and most enduring long-term competitive advantage”. Additionally, Southwestt keep developing its sustainable competitive advantage by using Generic Competitive Advantage. It was the advanced of Michael Porter’s Five Force Analysis Model consist of Low Cost or Differentiation. a) The Low Cost Strategy or Cost Leadership Southwest used tight cost control and cost minimization by keeping their cost of goods sold low but not as an exchange of satisfaction of the customer. They maintained low cost operation by doing several following things in the right way, effectively and efficiently: ...
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...Marketing Excellence Southwest Airlines Introduction Southwest Airlines Co. is the largest low-cost carrier in the United States, and is headquartered in Dallas, Texas. The airline was established in 1967, by Rollin King and Herb Kelleher. Southwest begins flying within the state of Texas (between Dallas, Houston, and San Antonio) with three Boeing 737 aircraft. Today Southwest operates nearly 400 Boeing 737 aircraft to 59 U.S. cities. Southwest has the lowest operating cost structure in the domestic airline industry and consistently offers the lowest and simplest fares. Southwest also has one of the best overall customer service records. Moreover, It is one of the few airlines with no layoffs aimed a travel slump created by the slow economy and the threat of terrorism. Southwest offers types of products and services which include; air transportation, mobile access, shuttle service, priority boarding, early bird check-in, and pet allowance. Southwest has pioneered in Senior Fares, a same-day air freight delivery service, Fun Fares, and Ticketless Travel. Southwest was the first airline with web page- southwest.com, DING! The first-ever direct link to Customer’s computer desktops that delivers live updates on ticket deals, and the first airline corporate blog. A timeline of key dates in Southwest Airlines history: 1971 - Southwest begins flying between Dallas, Houston, and San Antonio. The idea for the airline was hatched over drinks by San Antonio lawyer Herb Kelleher...
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...Southwest Case Southwest airline is one of the major U.S. low-cost airlines in the United States. It was founded in 1966 from an idea of Rolling King a San Antonio entrepreneur who owned small commuter air service. The original plan was fairly simple attract passenger by offering convenient schedules, getting on time to their destination while having a good experience, all these while trying to charge the most competitive prices. Over the course of the years Southwest had to fight really hard in order to establish itself in the market because of fierce competition. In order to compete with other big airline, Southwest introduced important and revolutionary concept that have deeply affected the airlines world until now a days. Just to mention a few: taking cue from its hub at Dallas Love Field they started the so called “Love campaign” (Southwest’s airplanes were Love Birds, it’s drinks Love potion etc) this set the tone for Southwest’s approach to its customers to make flying with Southwest an enjoyable and fun experience. The company decided strategically to move from big, expensive Intercontinental Airports to smaller and closer to downtown airports. They also reduced to 10 minutes the turnaround time (the time spent refueling, off-loading passengers and bags and cleaning up the airplane in order to be ready for the next flight). Southwest was also the first to differentiate among its consumers. They offered generally low fares but in certain time and on certain days it...
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... Dr. Sarah Park | Unit title and code (eg MN20010): MN30449 | Number of pages in assignment:17Word count: 2845 | Declaration I/we certify that I/we have read and understood the entry in the relevant Student Handbook for the School of Management on Cheating and Plagiarism and that all material in this assignment is my/our own work, except where I/we have indicated with appropriate references. I/we agree that, in line with Regulation 15.3(e), if requested I/we will submit an electronic copy of this work for submission to a Plagiarism Detection Service for quality assurance purposes. I/we also confirm that the percentage allocation of work is as shown above. Student Signature(s) | | | | | | | If assessment is group based, all members of the group must sign this form When to hand in You should aim to hand your work in before the deadline given by your lecturer/ tutor. The University guidelines on penalties for late submission are as follows: Any assessment submitted late without an agreed extension, will receive a maximum mark of 40%. Any assessment submitted more than 5 working days without an agreed extension will receive a mark of zero How to hand in This form is available electronically and can be pasted in to the front page of your assignment. If you are including this as a hard...
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...Analysis of Strategic Structure of Southwest Airlines Uploaded by so cerious on Jun 26, 2006 [pic] |Analysis of Strategic Structure of Southwest Airlines | | | |Twenty-nine years ago, Rollin King and Herb Kelleher got together and decided to start a different kind of airline. They began with one | |simple notion: 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. | | | |Within 28 years, Southwest Airlines became the fifth largest major airline in America. With the addition of service to Buffalo-Niagara | |International Airport on October 8, 2000, fly more than 57 million passengers a year to 57 great cities (58 airports) all over the | |Southwest and beyond. And she does it over 2,600 times a day. | | ...
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...Southwest Strategically Robert E. Woodward Embry Riddle Aeronautical University Abstract The following document will discuss and analyze how Southwest Airlines has become an industry leader in the air carrier business. How has Southwest Airlines adapted after the attacks on the Twin Towers of New York and the Pentagon on September 11, 2001. Where is the company headed in the future? Recommendations after a SWOT analysis will be made on how Southwest could remain one of the dominant leaders in the airline business. Southwest Airlines Corporate Stategy I. INTRODUCTION A. Executive Summary 1. Summary statement of the problem: Where did Southwest Airlines begin and how do they stay competitive in the air carrier industry since the attacks on America the morning of September 11, 2001. 2. Summary statement of the recommended solution: Southwest can stay competitive by reshaping its rewards program and trying to increase its customer loyalty. B. The Situation Southwest Airlines began business in 1971 offering flights between Houston, Dallas and San Antonio Texas. Now Southwest Airlines operates in more than 35 states. It offers shorter flights than other air carriers; that average less than 1.7 hours. Most of Southwest’s flights are non-stop. Southwest Airlines customer focused attitude helps them to become the leader in US flights, according to the bureau of transportation statistics (docstoc). On September 11, 2001, terrorist attacks shut down...
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... Introduction The intent of this paper it to define critical concepts of strategic planning with Southwest Airlines (SWA) top management and how their organization pursued choices and different strategies to run the business by using superior performance employees that gave them a competitive advantage over their competitors. I will concentrate on the thirteen strategic staffing decisions that are critical for any organization to be successful. I will also emphasis the knowledge, skills, abilities, and others (KSAOs) relative to the staffing process and how the company teaches these skills to the employees. This paper will focus on the success of the employees of the organization through the eyes of its past CEO Herb Kelleher. “We want to show them they’re important to us as who they are, as people. And by the way, one ramp agent - I have not disclosed this - sent me a note one day which I’ve never publicized, and I think you’ll understand why.” He said, “Herb, I finally got it. Your making work fun, and home is work.” (Herb Kelleher 2013) SWA was formed in 1971, to serve the inner cities within Texas but by 1998, it had 24,000 employees and 2,500 flights per day. The business was growing fast and the company worked hard at developing and maintaining a culture that it still emphasizes and instills today; flexibility, family orientation, and fun. Southwest airlines philosophy is about the people. It has been consistently successful with great employees and less than...
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...STRATEGIC MANAGEMENT CASE STUDY SOUTHWEST AIRLINES SÜLEYMAN SİNAN ÖZTÜRK EBS 5103 STRATEGIC MANAGEMENT INSTRUCTOR: DR. AHMET BEŞKESE BAHÇEŞEHİR UNIVERSITY May 2013 Contents CONTENTS ................................................................................................................................... 2 INTRODUCTION: ......................................................................................................................... 3 THE HISTORY: .............................................................................................................................. 3 CASE ANALYSIS: PESTEL FRAMEWORK................................................................................. 5 CASE ANALYSIS: MICHAEL PORTER’S FIVE FORCES FRAMEWORK ................................. 7 CASE ANALYSIS: COMPETITIVE PROFILE MATRIX .............................................................. 9 CASE ANALYSIS: VALUE CHAIN ANALYSIS ......................................................................... 10 FINANCIAL ANALYSIS ............................................................................................................. 12 SWOT ANALYSIS ....................................................................................................................... 16 SPACE MATRIX .......................................................................................................................... 18 TOWS MATRIX: ..............................
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...Ferriss BA 301 Final Term Paper Section Number: 1/3/2015 Southwest Airlines Table of Contents Executive Summary………………………………………………………………….....pg. 1-2 Situation Analysis………………………………………………………………………pg. 3-8 Problem Analysis & Description……………………………………………………….pg. 8-12 Solutions, Evaluation & Recommendation……………………………………………..pg. 12-16 Implementation Plan……………………………………………………………………pg. 16-18 Success Metrics…………………………………………………………………………pg. 18-19 Bibliography……………………………………………………………………………pg. 20 Executive Summary Today we are going to be taking a look at Southwest Airlines. After being provided with a background of this wonderful company, we are going to look into some problems that they are having with their Airlines Quality Ratings (AQR). We will discuss how the lack of on-time flights, problems customers are facing with the merger of Southwest and Air Tran and the open seating policy are negatively effecting this rating. We will look into solving these problems by implementing an Employee Incentive Program, getting new merger software and adopting a different seating policy. Once all of these concerns are solved we will talk about implementation and success metrics and start raising those AQR scores so Southwest Airlines can continue to grow to one of the greatest airlines in the world. Situation Analysis Southwest Airlines strives to be a very goal oriented company. Annually, Southwest airlines distributes what they call their One Report, which covers their...
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...I. Company background Southwest Airlines is one of the US based major air carrier based out of Dallas Texas where it commenced operations on June 18, 1971. It was founded by Rollin King and Herb Kelleher got together and decided to start a "different kind of airline”. " They began with one simple notion: 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" (1). Southwest started with three Boeing 737 aircrafts with focus of serving mainly three cities in the state of Texas; Houston, San Antonio and Dallas. By summer of 1993 Southwest already became the 7th largest airline in the US. Today Southwest operated more than 3,400 flights a day serving 93 destinations across the US and five other countries in the Americas with over 665 aircrafts in its fleets. Southwest strategy is clear and simple, it’s a three headed monster strategy that focuses on, short-haul, high -frequency and low-cost. The NYSE symbol for the company is LUV, which indicated the home of the company at the Dallas Love Field airport and the theme of the cordial relationship created and maintained between Southwest employees and its customer. On Jan 22nd 2014, CEO and chairman of the board announced a record annual income of $1.1 billion or $1.64 per diluted share which is 20 cent higher than the industry average return per share during the same period. This...
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...I. Company background Southwest Airlines is one of the US based major air carrier based out of Dallas Texas where it commenced operations on June 18, 1971. It was founded by Rollin King and Herb Kelleher got together and decided to start a "different kind of airline”. " They began with one simple notion: 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" (1). Southwest started with three Boeing 737 aircrafts with focus of serving mainly three cities in the state of Texas; Houston, San Antonio and Dallas. By summer of 1993 Southwest already became the 7th largest airline in the US. Today Southwest operated more than 3,400 flights a day serving 93 destinations across the US and five other countries in the Americas with over 665 aircrafts in its fleets. Southwest strategy is clear and simple, it’s a three headed monster strategy that focuses on, short-haul, high -frequency and low-cost. The NYSE symbol for the company is LUV, which indicated the home of the company at the Dallas Love Field airport and the theme of the cordial relationship created and maintained between Southwest employees and its customer. On Jan 22nd 2014, CEO and chairman of the board announced a record annual income of $1.1 billion or $1.64 per diluted share which is 20 cent higher than the industry average return per share during the same period. This...
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...Professor Samir Moussalli MGMT499 November 18, 2010 Analysis Conducted by PSPS Associates Outline I. Management Summary II. Introduction a. Purpose b. goals III. Background IV. Strategy Formulation a. Vision b. External Opportunities & Threats c. Internal Strengths & Weaknesses d. Long Term Objectives e. Alternative Strategies f. Strategy Selection V. Strategy Implementation a. Annual Objectives b. Policies c. Employee Motivation d. Resource Allocation VI. Strategy Evaluation a. Internal Review b. External Review c. Performance Measurement d. Corrective Action In this analysis of Jet Blue Airlines, we will take an in-depth look at the internal and external factors surrounding the operation and continued success of the airline. We will reveal the opportunities, both internally and externally. As well as expose threats that could potentially...
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...STRATEGY MBL 915P Southwest Airlines in 2008: Culture, Values and Operating Practices Repeater Assignment 2 By : Refiloe Mokebe (72542683) 9/6/2011 Table of Contents Introduction 3 Question 1 – What is impressive about South West? 3 Question 2 – Benchmarking against the best practices 4 Question 3 – Key drivers for low cost / no frills strategy 6 Question 4 - What are the key elements of Southwest’s culture? 9 Question 5 - What grade would you give Southwest management? 13 Question 6 - What problems or weaknesses do you see at Southwest Airlines? 15 Question 7 - What recommendations would you make to Gary Kelly? 16 List of References 17 Introduction The objective of this assignment is to apply analytical methods on how Southwest Airlines strategy is executed. Various Strategic models will be used in analyzing how Southwest Airlines is applying and executing their strategy. In late 1966, Rollin King, a San Antonio entrepreneur who owned a small commuter air service, marched into Herb Kelleher’s law office with a plan to start a low cost/ low-fare airline that would shuttle passengers between San Antonio, Dallas and Houston. Southwest Airlines was founded as Air Southwest Company in 1967, it incorporated as Southwest Airlines in Texas and began customer service in 1971. The airline was founded on King’s simple business concept “attract passengers by flying convenient schedules, getting them to their destination on time with good experience...
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...Professor Edward Desmarais BUS 470 Business Policy and Strategy Spring 2004 SOUTHWEST AIRLINES CASE ANALYSIS Presented by: The Stategizers Lawrence Bluemmel, Irene Johnson, Dennis Mackey, Dorothea Morgan, Elaine Pereira, Jeff Piecuch, Heather Pontifex, Nicole Soucy TABLE OF CONTENTS I. Executive Summary 3 A. Mission 3 B. Vision 3 C. Objectives 3 D. SWOT Summary 6 E. Recommendations 7 II. Current Situation 8 A. Current Performance 8 B. Strategic Posture 9 III. Corporate Governance 25 A. Board of Directors 25 B. Top Management 25 IV. External Factors 27 V. Internal Factors 118 VI. Action Plan 178 Appendix A. Stakeholders Worksheet 206 Appendix B. Answers to Panel’s Questions 212 I. EXECUTIVE SUMMARY A. Mission To provide a low-cost/low-price/no-frills, reliable, friendly service with “more value for less money” mode of transportation for consumers traveling short distances for business and/or leisure. B. Vision ...
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...382 PART 5 SHAPING THE MARKET OFFERINGS ter p ha C 14 In This Chapter, We Will Address the Following Questions 1. How do consumers process and evaluate prices? 2. How should a company set prices initially for products or services? 3. How should a company adapt prices to meet varying circumstances and opportunities? 4. When should a company initiate a price change? 5. How should a company respond to a competitor’s price change? As a high-end luxury goods provider, Tiffany & Co. knows the importance of preserving the integrity of its prices. Developing Pricing Strategies and Programs Price is the one element of the marketing mix that produces revenue; the other elements produce costs. Prices are perhaps the easiest element of the marketing program to adjust; product features, channels, and even communications take more time. Price also communicates to the market the company’s intended value positioning of its product or brand. A well-designed and marketed product can command a price premium and reap big profits. But new economic realities have caused many consumers to pinch pennies, and many companies have had to carefully review their pricing strategies as a result. For its entire century-and-a-half history, Tiffany’s name has connoted diamonds and luxury. Tiffany designed a pitcher for Abraham Lincoln’s inaugural, made swords for the Civil War, introduced sterling silver to the United States, and designed the “E Pluribus Unum” insignia that adorns $1 bills...
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