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Southwest Airlines Presentation

Group 4
by

Shin Herbast

on 4 January 2013

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Transcript of Southwest Airlines Presentation

by Group 4:
- Dini Dayu Samerdya
- Muhammad Bayu
- M. Irham Zuhdy
- Nurul Rena
- Vinny Herianti Southwest Airlines Southwest Airlines famous for its low fares, 30% lower than those of its major rivals.
Southwest Airlines maintains its low cost by perform effective and efficient on its operational.
Airlines are “Masters of Transportation Economics, not Customer Experiences”.
Devotes enormous attention to the people it hires. Southwest Business Model - 'Low Cost' Overview Southwest Resources Organizational Resources:
Organizational Culture.
Reputation as low fare airlines.
Coordination.
Employees' loyalty.
Financial Resources:
Profitable business operation.
Employees profit sharing term.
Physical Resources:
Boeing 737.
Human Resources:
Teamwork and positive attitude employees.
Integrated and hard working employees. Southwest Capabilities Teamwork and cooperation among its employees.

Valuing and meeting market demands.

Organizing tight flight schedules.

Exploiting technology.

Mastering the basic of transportation value.

Working efficient and effectively Southwest's Distinctive Capability: It's Operational Choice

why?

for existing competitors (United, Continental and Delta) create subsidiaries to implement Southwest's strategies (single type airplane, flew into smaller airport, point-to-point route structure, etc). “Southwest has both temporary (distinctive) competitive advantage and sustained competitive advantage. Southwest can balancing their performance and put differentiation strategy as their key to have higher value than competitors and separating them from competitors. They can integrate the advantages they have and maximize the exploitation of their capabilities, and also they are the pioneer and market leader of the low fare airlines industry.

“People management” keeps Southwest on its track to give the best service in transportation industry, it has people (employees) who put all their effort, attention and integrity to do efficient and effective business operation. This advantage that leads Southwest to has superior financial performance”. How secure is Southwest’s competitive advantage?
Distinctive advantages valuable, rare, but not costly to imitate put Southwest in danger to loss in competition unless they can always innovate and creative in value creation to differentiate their service from other competitors. But!! for its new competitor

Southwest's people management can be imitated, because new competitor can build good relationship with its crews/employees from the very beginning to become like Southwest to its crews/employees or even better. What are the barriers to imitation? The barrier is for the existing players of industry: to manage and has close relationship with their employees like Southwest do is costly to imitate. Employees loyalty can’t be bought with money and short time but it is developed from time to time with the work satisfaction "fin"
thank you any question?
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