Irma Irsyad - Southwest Case Study

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Southwest Airlines in 2008: Culture, Values and Operating Practices

Irma to edit Master subtitle style ClickIrsyad 1040002194 Strategy and Execution Lecturer: Mr Janpie Siahaan

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Background

Pioneered the low-cost model Primarily short haul High-frequency Point-to-Point The 3rd largest airline in the world (fleet size)

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History

Founded: 1971 (Rollin King and Herb Kelleher) Fleet size : 472 Destination : 63 Headquarter: Dallas, Texas Started serving Dallas, Houston and San Antonio based on: convenient schedules, low fares, on time arrivals Gained foothold after several difficulties

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Company Values

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Companys Culture

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Business Concept

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Top-Ten Airport (daily departure)

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Activities

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Business Segment

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Southwest flies to 62 cities in 32 states in America

Albany Albuquerque Amarillo Austin Baltimore/Washington Birmingham Boise Buffalo Burbank Chicago (Midway) Cleveland

Columbus

Corpus Christi

Geographical Segmentation
Indianapolis Long Island Jackson Jacksonville Kansas City Las Vegas Little Rock Los Angeles (LAX) Louisville Lubbock Manchester Midland/Odessa Nashville New Orleans Norfolk North Virginia (Dulles) Oakland Oklahoma City Omaha Ontario Orange County Orlando

Philadelphia Phoenix Pittsburgh Portland Providence Raleigh-Durham Reno Sacramento St. Louis Salt Lake City San Antonio

San Diego San Jose Seattle/Tacoma Spokane Tampa Tucson Tulsa West Palm Beach

Dallas (Love Field) Denver Detroit (Metro) El Paso Ft. Lauderdale/Hollywood Ft. Myers/Naples Harlingen/South Padre Island Hartford/Springfield Houston (Hobby)

Southwest looked for city pairs that could generate substantial amounts of both business and leisure traffic

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Route Map

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Strategy Implementation

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Building Capable Organization

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Southwest Capability

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Staffing Employee come first and Customers come second

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Development of Core Competencies & Competitive Capabilities

Low Operating cost

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Development of Core Competencies & Competitive Capabilities

Focus on Customer and Customer Satisfaction


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Development of Core Competencies & Competitive Capabilities

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Development of Core Competencies & Competitive Capabilities

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Matching the Organisation structure

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SWOT Analysis

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Five Forces Analysis

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The Blue Ocean way

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Four actions framework

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The eliminate-raise-createreduce Grid

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Key success factors

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Key People

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Conclusion
Southwest build numbers on its culture whereas other airlines have their culture shaped by numbers

Southwest

Other airlines

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