THE UNIVERSITY OF SOUTHERN MISSISSIPPI
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Study Abroad in PanamaCoordinated byDr. Tulio SulbaranTel: 601-266-6419 - Email: tulio.sulbaran@usm.edu
1
Ce
THE UNIVERSITY OF
SOUTHERN MISSISSIPPI
Jul 2012
COMPARISON OF BUSINESS STRATEGIES: COPA AIRLINES VS. SOUTHWEST AIRLINESPresented by:Nicole NettlesTel: 228-218-1957 - Email: nicole.nettles@eagles.usm.edu
Center for Logistics, Trade and Transportation
and
College of Business
Study Abroad in Panama
July 2011
THE UNIVERSITY OF
SOUTHERN MISSISSIPPI
Center for Logistics, Trade and Transportation
And
College of Business
1
Video Preamble
Study Abroad in Panama
July 2012
THE UNIVERSITY OF
SOUTHERN MISSISSIPPI
Center for Logistics, Trade and Transportation
And
College of Business
Study Abroad in Panama
July 2011
THE UNIVERSITY OF
SOUTHERN MISSISSIPPI
Center for Logistics, Trade and Transportation
And
College of Business
2
Outline
1- Introduction
2- Information/Data Collection Approach
3- Case Study
4- Results and Results Impact
Similarities
Differences
5- Summary
Study Abroad in Panama
July 2012
THE UNIVERSITY OF
SOUTHERN MISSISSIPPI
Center for Logistics, Trade and Transportation
And
College of Business
Study Abroad in Panama
July 2011
THE UNIVERSITY OF
SOUTHERN MISSISSIPPI
Center for Logistics, Trade and Transportation
And
College of Business
3
Introduction
Differentiation Strategy- an attempt at which companies strive to create products or services that are different and unique from other products or service in the industry
Study Abroad in Panama
July 2012
THE UNIVERSITY OF
SOUTHERN MISSISSIPPI
Center for Logistics, Trade and Transportation
And
College of Business
Study Abroad in Panama
July 2011
THE UNIVERSITY OF
SOUTHERN MISSISSIPPI
Center for Logistics, Trade and Transportation
And
College of Business
4
Introduction
Panama:
Dollar-Based Economy
Relies heavily on services, 1/3 of GDP
Services include Panama Canal, banking, insurance, logistics, ports, Colon Free Trade Zone, tourism
Panama Canal Expansion expected to boost economy
Unemployment Rate was 4.5% in 2011
Study Abroad in Panama
July 2012
THE UNIVERSITY OF
SOUTHERN MISSISSIPPI
Center for Logistics, Trade and Transportation
And
College of Business
Study Abroad in Panama
July 2011
THE UNIVERSITY OF
SOUTHERN MISSISSIPPI
Center for Logistics, Trade and Transportation
And
College of Business
5
Introduction
This report compares the differentiation strategies in the airline industry. The comparison includes the companies Copa Holdings, Inc. and Southwest Airlines.
Study Abroad in Panama
July 2012
THE UNIVERSITY OF
SOUTHERN MISSISSIPPI
Center for Logistics, Trade and Transportation
And
College of Business
Study Abroad in Panama
July 2011
THE UNIVERSITY OF
SOUTHERN MISSISSIPPI
Center for Logistics, Trade and Transportation
And
College of Business
6
Information/ Data Collection Approach
First form of data collection was a Internet search
Internet Search began close to a month before leaving
Google Search Engine
Specific keywords used to locate related information
12 sources were chosen to complete report
Study Abroad in Panama
July 2012
THE UNIVERSITY OF
SOUTHERN MISSISSIPPI
Center for Logistics, Trade and Transportation
And
College of Business
Study Abroad in Panama
July 2011
THE UNIVERSITY OF
SOUTHERN MISSISSIPPI
Center for Logistics, Trade and Transportation
And
College of Business
7
Information/ Data Collection Approach
Southwest Airlines Seven Secrets for Success
BusinessDictionary.com
CIA- The World Fact Book
Center for Aviation
Copa Airlines
Nation Branding & Investment
NCR Corporation
The Official Klout Blog
What makes COPA
Airlines one of the most popular airline brands in the world? An Interview with two senior execs
Standard & Poors: Southwest Airlines Co.
Standard & Poors: Copa Holdings Inc.
Zacks Equity Research
Information gathered from Internet Search:
Study Abroad in Panama
July 2012
THE UNIVERSITY OF
SOUTHERN MISSISSIPPI
Center for Logistics, Trade and Transportation
And
College of Business
Study Abroad in Panama
July 2011
THE UNIVERSITY OF
SOUTHERN MISSISSIPPI
Center for Logistics, Trade and Transportation
And
College of Business
8
Information/ Data Collection Approach
Second Form of Data Collection was In-Person Interview
Joseph Maugh from the University of Florida, Commercial and Planning Vice President at Copa Airlines
Interview Questions asked:
What is the background and goals of Copa Airlines?
How is Copa differentiated in the airline industry in Latin America?
Study Abroad in Panama
July 2012
THE UNIVERSITY OF
SOUTHERN MISSISSIPPI
Center for Logistics, Trade and Transportation
And
College of Business
Study Abroad in Panama
July 2011
THE UNIVERSITY OF
SOUTHERN MISSISSIPPI
Center for Logistics, Trade and Transportation
And
College of Business
9
Information/ Data Collection Approach
Copa differentiates itself through efficiency and the experience customers receives
Connectivity is also a major advantage Copa has over it competitors, they provide flights departing to the same locations frequently
Efficiency, Experience, Connectivity
Study Abroad in Panama
July 2012
THE UNIVERSITY OF
SOUTHERN MISSISSIPPI
Center for Logistics, Trade and Transportation
And
College of Business
Study Abroad in Panama
July 2011
THE UNIVERSITY OF
SOUTHERN MISSISSIPPI
Center for Logistics, Trade and Transportation
And
College of Business
10
Case Study
Copa Holdings Inc.:
Located in Panama City, Panama
Main hub located in Tocumen Airport
Incorporated as a sociedad anonima in 1998
CIASA, 49% stake to Continental, then reduced share to 27.3% in 2005, and 10% in 2006, sold remaining shares in 2008 to public
Copa purchased AeroRepulica in 2005, expanding to 63 destinations in 29 countries
Copa Holdings is a leading Latin American provider of airline passenger and cargo services through our tow principal operating subsidiaries, Copa Airlines and Copa Airlines Columbia. Copa Airlines
Study Abroad in Panama
July 2012
THE UNIVERSITY OF
SOUTHERN MISSISSIPPI
Center for Logistics, Trade and Transportation
And
College of Business
Study Abroad in Panama
July 2011
THE UNIVERSITY OF
SOUTHERN MISSISSIPPI
Center for Logistics, Trade and Transportation
And
College of Business
11
Case Study
Southwest Airlines:
Headquartered in Dallas, TX
Began as Air Southwest Co. in 1967 to provide airline services for Texas area
73 locations in US
Average flight length 969 miles
Only utilizes Boeing 737 aircraft in fleet of 558
3,200 flight per day
Net Income $178 million in 2011
Study Abroad in Panama
July 2012
THE UNIVERSITY OF
SOUTHERN MISSISSIPPI
Center for Logistics, Trade and Transportation
And
College of Business
Study Abroad in Panama
July 2011
THE UNIVERSITY OF
SOUTHERN MISSISSIPPI
Center for Logistics, Trade and Transportation
And
College of Business
12
Results and Results Impact
Aspects Compared Between Companies:
Overall business strategy
Average cost for an airline ticket
Methods for checking in and assigning customers a location on the plane
Service provided by airline attendants
On-flight amenities
Marketing strategy
Overall mentality of the business model
Study Abroad in Panama
July 2012
THE UNIVERSITY OF
SOUTHERN MISSISSIPPI
Center for Logistics, Trade and Transportation
And
College of Business
Study Abroad in Panama
July 2011
THE UNIVERSITY OF
SOUTHERN MISSISSIPPI
Center for Logistics, Trade and Transportation
And
College of Business
13
Results and Results Impact
Similarities:
Study Abroad in Panama
July 2012
THE UNIVERSITY OF
SOUTHERN MISSISSIPPI
Center for Logistics, Trade and Transportation
And
College of Business
Study Abroad in Panama
July 2011
THE UNIVERSITY OF
SOUTHERN MISSISSIPPI
Center for Logistics, Trade and Transportation
And
College of Business
14
Results and Results Impact
Differences
Study Abroad in Panama
July 2012
THE UNIVERSITY OF
SOUTHERN MISSISSIPPI
Center for Logistics, Trade and Transportation
And
College of Business
Study Abroad in Panama
July 2011
THE UNIVERSITY OF
SOUTHERN MISSISSIPPI
Center for Logistics, Trade and Transportation
And
College of Business
15
Results and Results Impact
The similarities in these results are important because it can be seen that companies all over the world utilize the same business strategies in order to gain an advantage within their respective markets. No matter the location of the company business works the same way, and many companies have utilized similar avenues to be successful.
The difference in these results are important because we can see that both companies have created a sustainable competitive advantage with the industry utilizing a differentiation strategy, but have created the advantage in two very different ways.
Study Abroad in Panama
July 2012
THE UNIVERSITY OF
SOUTHERN MISSISSIPPI
Center for Logistics, Trade and Transportation
And
College of Business
Study Abroad in Panama
July 2011
THE UNIVERSITY OF
SOUTHERN MISSISSIPPI
Center for Logistics, Trade and Transportation
And
College of Business
16
Summary
Compares differentiation strategies between Copa and Southwest
Copa uses efficiency, experience, and connectivity, Southwest uses low costs and relaxed atmosphere
Data was collected using an Internet search and in-person interviews
Similarities include: overall strategy, marketing efforts, online services
Differences include: ticket price, company focus, seating and layout of the aircraft, amenities provided on the plane, employee attitudes and atmosphere
Both companies are exceptional examples of how successful companies utilize differentiation strategies
Study Abroad in Panama
July 2012
THE UNIVERSITY OF
SOUTHERN MISSISSIPPI
Center for Logistics, Trade and Transportation
And
College of Business
Study Abroad in Panama
July 2011
THE UNIVERSITY OF
SOUTHERN MISSISSIPPI
Center for Logistics, Trade and Transportation
And
College of Business
17
THE UNIVERSITY OF SOUTHERN MISSISSIPPIfounded in 1910
Thanks!
Center for Logistics, Trade and Transportation
and
College of Business
Study Abroad in Panama
July 2011
THE UNIVERSITY OF
SOUTHERN MISSISSIPPI
Center for Logistics, Trade and Transportation
And
College of Business
18
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