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PRESENTEDBY
GROUP-5SARVPREET BHATTI-169
MANPREET SINGH-151
GOLDI-137
ATUL VIKAS-159
KUMAR ASHISH-171
RAVI KUMAR- 136
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SOUTHWEST AIRLINES
If you get your passengers to their destinations when theywant to get there, on time, at the lowest possible fares, andmake darn sure they have a good time doing it, people will flyyour airline.
You put your employees first. If your employees are treatedright , they will treat your customers right, your customers willcome back, and thats what makes your shareholders happy.
MISSIONThe mission of Southwest Airlines is dedication to the highestquality of customer service delivered with a sense of warmth,friendliness, individual pride, and company spirit. It primarilyprovides short haul, high-frequency, point-to-point, low-fare airtransportation service among 58 cities (59 airports) in theUnited States.
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Incorporated in Texas in U.S. by Herb Kelleherand Rollin king in 1971
Commenced customer service with 3 boeing737 aircraft
Now operates more than 500 boeing 737aircraft
Operate more than 3300 flights a day
35000 employees engaged
The United States most successful low-fare,high frequency, point-to-point carrier
Known as a discountairline since 1973
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For the 12th year in a row, FORTUNEmagazine recognized Southwest Airlines inits annual survey of corporate reputations in2008.
2003 Selected as AIRLINE FOR THEYEAR
2007 included in top 100 most innovativetechnology organization
First airline to establish a home page oninternetRanked number one in customer service 36 consecutive year of profitability
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Defined as:
art of motivating a group of people to act towards achievinga common goal
According to HERB KELLEHER
Leadership is a way of life, culture, desire and commitment Leadership is the job of every employee, not just upper level
management
Every employee should have the ability to ascertain situationsand be able to act on their own decision
Employees should be able to lead other employees to makedecisions
He does not rule over his employee but rather, rules with hisemployees
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.
humour
Work should be fun ...it can be play . . .Enjoy it.
Both at workplace and inside the plane
altruism
Work is important ...dont spoil withseriousness.
Welfare of people comes first
luv
People are important...each one makesa different.
Employee and customer commitment
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SUCCESSISHOWHIGHYOUBOUNCEWHENYOUHITBOTTOM
WHYITISSUCCESSFUL ?
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WHYITISSUCCESSFUL ?
Competitive advantage
Internal customers
Management styleLeadership
Work-culture
Family spirit
Trust
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Open sharing of information Training
Collective bargaining
Flexibility
Discounted stock purchase
Creative spirit
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People consider it as crusade instead ofbusiness.
Most glowing star in southwest policy.
WORK
CULTURE
Eagerness to be at the top.
Challenges top competitors as US
AIR,UNITED, DELTA
COMPETITIVE
ENVIRONMENT
CEO HERB KELLEHER played majorrole with his unique mgmt style.
Team of PARKER, COLLIN to handle .
LEADERSHIP
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4
Trust of customers declared it as mostadmired airlines and company.TRUST
Respects ideas of employees. Committee of managers, employee
interaction.
OPEN SHARING OFINFORMATION
Respect for sense of humor.
Compatible attitude of learning.
CREATIVITY SPIRIT
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Governmentregulations andrestrictions
Fluctuation in gasand oil prices
Operate AtInternational Level
Focus On PopularDestinations
No internationalflight.
Carry small amoutof freight and cargo.
Inconvenience tobusiness customers
Employeesatisfaction
Customer service Low fares
Stable profitability
Scheduled service
Leadership
Strengths Weakness
ThreatsOpportunity
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Integrated Low Cost/Differentiation
Strategy
Use a single aircraft model (Boeing 737)Use secondary airportsFly short routesLow cost meals15 minute turnaround timeNo reserved seats
No travel agent reservations
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Fuel hedging Purchased fuel options for years in advance to smooth
out fluctuations in fuel costs Substantially increased its hedging in 2001 in
response to projections of increased crude oil prices
Advantaged after Sep. 11, 2001 attack, the oil shock
from Iraq War, and Hurricane KatrinaOperated only one model of aircraft Boeing 737, medium range-narrow body commercial
passenger jet aircraft
Easy to replace parts and ground support equipment
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PRICEELASTICITYOFDEMAND
The percentage change in quantity demanded (Q)that occurs in response to a percentage change inprice (P)
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The firm identifies different consumer groups, inthe market, each with a different demand curve.
Southwest Airlines recognizes that any given flights
has different types of travelers
Business travelers vs. Vacation travelers
To maximize profit, the firm sets a price for each
group by equating marginal revenue and
marginal cost.
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Southwest Airlines uses third-degree price
discrimination to fill the plane with travelers in the
most profitable way
Depending on the price of elasticity of demand for
tickets
Charge a higher price for business travelers who
have relatively inelastic demands and vice versa
Employee and customer satisfaction
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