Professional Documents
Culture Documents
Group 961
Dumitrescu Serban
Baldovin Bogdan
Steriu Mircea
INTRODUCTION
Background In time
Over 3200 flights on a daily basis
Started in 1971 as an intra-trade
37000 employees spread over 73
operator
cities
Budget airline philosophy
Southwest.com is the worlds largest
Operates out of Dallas Love Field
airline website by the number of
airport
visitors
Refers to itself as the LOVE (LUV)
By 2008, many airlines have been
airline
created based on Southwests model
Largest air carrier in the world by
A public entity built around customer
2001
and employee relationship
National carrier, serving major
Taking excellent care of our customers
cities
is just as important as filling our planes
Short-haul, high-frequency, low-
with fuel
cost strategy
Bob Young, SW Vice-President
The people who work here dont
think of Southwest as a business.
THE SOUTHWEST MODEL
Putting a lot of
Providing low- emphasis on
fare and short- the fair
haul flight treatment of its
services. customers.
Controlled
solid
growth
for the Building
Offering the
highest quality
company friendly
relationships
of customer with their
service. clients
TARGET MARKETS
Value-
conscious Evangeli
consumers sts
HOW DOES SW CREATE VALUE
CONSUMER COMPETITIVE
SATISFACTION ADVANTAGE
Customer-journey Trust
consistency Non-adversarial relations
Emotional consistency Transparecy
Communication consistency High productivity
Integration into internal
processes
COST CONTROL
1 3
COST CUTTING NUMBER OF
One type of airplane (Boeing 737) DEPARTURES
At least 20 departures per day
No premier seating classes Maximize the productivity of people and
No inflight meals or movies machinery
Southwest
No revenue problems,
Airlines
but cost ones
2 4
SWs cost per passenger was 7.3 cents
*Carry inventory if possible (1993)
GROWTH STRATEGY
Ground
Economics
In-air
Economics
Total
Economics
No baggage fees
Enrolment Compensation
Strengths Weaknesses
S W
Strong technical and operational
No segmentation of services
knowledge
Dependant on a single produces
Friendly approach with the
(Boeing)
customers
Innovative ideas to retain old
clients
Low cost per seat and free
baggage policy
Opportunities Threats
O T
Growing US Airline industry Stiff competition
Access to foreign markets Rising operational costs
Partnership with foreign airliners Restricted fare seat-mile
Expanding services for leisure or
business classes