THE UNIVERSITY OF SOUTHERN MISSISSIPPI

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Study Abroad in PanamaCoordinated byDr. Tulio SulbaranTel: 601-266-6419 - Email: [email protected]

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THE UNIVERSITY OF

SOUTHERN MISSISSIPPI

Jul 2012

COMPARISON OF BUSINESS STRATEGIES: COPA AIRLINES VS. SOUTHWEST AIRLINESPresented by:Nicole NettlesTel: 228-218-1957 - Email: [email protected]

Center for Logistics, Trade and Transportation

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College of Business

Study Abroad in Panama

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Video Preamble


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Outline

1- Introduction

2- Information/Data Collection Approach

3- Case Study

4- Results and Results Impact

Similarities

Differences

5- Summary


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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


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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


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Introduction

This report compares the differentiation strategies in the airline industry. The comparison includes the companies Copa Holdings, Inc. and Southwest Airlines.


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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


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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:


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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?


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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


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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


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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


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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


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Similarities:


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Differences


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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.


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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


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THE UNIVERSITY OF SOUTHERN MISSISSIPPIfounded in 1910

Thanks!


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THE UNIVERSITY OF SOUTHERN MISSISSIPPI

Documents

industry study

complete report study

video preamble study

colon free trade zone

copa airlines

companies copa holdings

differentiation strategies

southwest airlinespresented