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Southwest Airlines

Business Strategy Analysis
by

Sal Casillas

on 17 April 2013

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Transcript of Southwest Airlines

Presented by: Southwest Airlines Analysis Introduction Mission
Business Model
Organization Culture
People & Policies Problem
&
Challenges Analysis Competitor Matrix
Table Recommendation Conclusion Strategic Management - Team 7 Presentation Outline Introduction of SWA
Problem Statement
Internal Analysis
External Analysis
Recommendation
Competitor Matrix
Conclusion Rollin King Herb Kelleher
* Provide frequent, low-cost airline service.
* The idea for Southwest Airlines was drawn on a cocktail napkin. Founded in 1971
by Identify customers that you want to serve Be the Lower cost provider * Short haul
* High frequency
* Low fare * frequent but no frills service
* Only flies one model airplane
(Boeing 737) Business Model of SWA People Our dedicated employees do more than deliver the friendly, high-quality Customer Service for which we’re known—they created Southwest Airlines’ unique Culture and storied 40-year history. Route Serious in keeping cost down.
On-time performance.
Family organization philosophy.
The glue that holds Southwest together is its corporate culture. Policies Southwest Culture > Loss of Strong Leader
> Organizational Culture
> No succession plan Problems > Maintain market competitiveness
> Demotivation of employee
> Going global Challenges Internal External Value Chain Analysis primary : Inbound logistic, outbound logistic, marketing, sales, service Secondary : General Administration, HR, Research, Technology, System development & Procurement Intangible
Tangible Resources Financial Analysis SwOT Matrix
SWA Porter 5s Forces Pest Analysis Political
Economical
Social
Technology Comparative Market Position high Low Quality high Price Competitiveness 1. Global expansion in new markets
2. Diversification
3. On flight entertainment and service
4. Nurturing the culture
5. Leadership development & succession plan Recommendations
Full transcript