Southwest Airlines: Creating

Competitive Advantage through

Superior Service and Culture
Outline
• Introduction

• Objective of this case study

• Learning and framework: Southwest

Airlines

• HRM Concepts followed by Southwest

Airlines

• Conclusion

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 Southwest Airlines was founded in 1966 by Herbert Kelleher and Rollin King, and in 1967 it was

Introduction
incorporated as Air Southwest Co. Three other airlines took legal action to try to prevent the
company from its planned strategy of undercutting their prices by flying only within Texas and
thus being exempt from various regulations. The lawsuits were resolved in 1970, and in 1971 the
airline began operating regularly scheduled flights between Dallas Love Field and Houston and
between Love Field and San Antonio and adopted the name Southwest Airlines Co. In 1975,
Southwest began operating flights to various additional cities within Texas, and in 1979 it began
flying to adjacent states. Service to the East and the Southeast started in the 1990s. Southwest
turned a profit for 47 consecutive fiscal years from 1973 through 2019.

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Objective of this case study
Company's unique approach to managing its
workforce and the key organizational
capabilities that have enabled it to achieve
superior performance. It also highlights the
importance of aligning the company's
culture, strategy, and employee needs to
achieve a sustainable competitive advantage.
Southwest Airlines has been able to develop
a strong culture of customer service and
employee engagement that has enabled it to
differentiate itself from its competitors and
build a loyal customer base.
The case study offers valuable insights into
how a company can leverage its human
capital to achieve long-term success and
competitive advantage in a highly
competitive market. By focusing on
employee needs satisfaction,
Overall, the objective of the case study is to
provide a detailed analysis of Southwest
Airlines' success and identify the key factors
that have contributed to its sustained
competitive advantage.
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Learning and framework: Southwest Airlines
• Importance of Employee Needs Satisfaction: The case study highlights the importance of employee needs satisfaction in driving
organizational performance and competitive advantage. Southwest Airlines' success can be attributed to its unique approach to
managing its workforce and aligning employee needs with the company's strategy and culture.

• Organizational Capabilities: The case study identifies several key organizational capabilities that have enabled Southwest Airlines to
achieve superior performance, including a strong culture of customer service, operational efficiency, and effective leadership.

• Competitive Advantage: The case study shows how Southwest Airlines has leveraged its employee needs satisfaction and
organizational capabilities to achieve sustained competitive advantage in a highly competitive market.

• Framework for Employee Needs Satisfaction: The case study provides a framework for understanding employee needs satisfaction,
including the importance of fair compensation, job security, work-life balance, and opportunities for career growth.

• Relationship between Employee Satisfaction and Customer Satisfaction: The case study highlights the relationship between
employee satisfaction and customer satisfaction, showing how a highly engaged and motivated workforce can drive superior
customer service and loyalty.

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 Human Resource Planning:
Southwest Airlines has a
comprehensive human resource
planning process that aligns its
workforce with its business
strategy. The company's
recruitment and selection process
Training and Development:
Southwest Airlines invests heavily
in training and development to
ensure that its employees have the
skills and knowledge they need to
provide superior customer
service. The company provides

HRM Concepts
is designed to attract candidates extensive training in customer
who are a good fit for the service, safety, and technical
company's culture and values. skills.

followed by
Performance Management:
Compensation and Benefits:
Southwest Airlines has a
Southwest Airlines offers
performance management system
competitive compensation and
that emphasizes continuous
benefits packages to attract and
feedback and coaching. The
retain top talent. The company's

Southwest
company uses performance
compensation system is designed
metrics to evaluate employee
to reward performance and align
performance and provide
employee interests with company
feedback on areas for
performance.
improvement.

Airlines Employee Engagement:

Southwest Airlines has a strong
culture of employee engagement,
which is supported by regular
communication, recognition
programs, and opportunities for
Regenerate response
feedback and input. The
company's employee engagement
programs are designed to create a
sense of ownership and
commitment among its
workforce.

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 Conclusion
• The case study provides valuable insights into how a company can
leverage its human capital to achieve long-term success and competitive
advantage. It highlights the importance of employee needs satisfaction and
organizational capabilities and provides a framework for understanding
how these factors can be aligned with the company's strategy and culture
to achieve sustained competitive advantage.

• Southwest Airlines' approach to HR management has enabled the company

to achieve several key organizational capabilities, including a strong
culture of customer service, operational efficiency, and effective
leadership. These capabilities have enabled the company to achieve
superior performance and sustain competitive advantage in a highly
competitive market.

• Southwest Airlines' success can be attributed to its unique approach to

managing its workforce, which emphasizes employee needs satisfaction
and organizational capabilities. The company invests heavily in training
and development to ensure that its employees have the skills and
knowledge they need to provide superior customer service. It also offers
competitive compensation and benefits packages, as well as a strong
culture of employee engagement.

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Thank You
Archana Ramachandra
HRM ASSIGNMENT 2

PROF. SOLAI BHASKARAN

EMBA TRIMESTER 1, DAYANAND SAGAR

UNIVERSITY

Tuesday, February 2, 20XX Sample Footer Text 8