Southwest Airlines

Southwest Airlines Case Discussion Bullet Points Matt putter around Cohort 3 & strapper;

September, 8 2008

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What does it take to make money in this industriousness? o Airline industry extremely sensitive to wrong  Intense price competition between airlines o mellowed fixed cost in the industry  This makes efficiency genuinely important What is the SWA strategy? o Simplify operations  This leads to increase efficiency o Low cost structure  Short-haul debauched  Productivity of the SWA workforce • Pilots loading bags, flight attendants checking passengers in. • 81 employees per aircraft for SWA o United: 157 o American: 152 o Point-to-point strategy  Using less congested airports improves efficiency  Shorter regression time, higher equipment use. o Use one type of fuel-efficient aircraft  Improves efficiency, lowers costs What are the tasks that are critical to implementing the strategy? What does it take to melt their strategy? o People: Their workforce must be highly efficient.  Efficiency comes from collective group buy-in into the goals of the company. • SWA does this by creating a family tune, along with profit incentives (stock options). o Culture  Family atmosphere creates group buy-in.



o Systems  Training and recruiting are key • Current employees are involved in the hiring and training processes, which helps take over SWA’s cultural values and norms in new employees. why is SWA a success? o Efficient and productive workforce o Workforce is bought into the company’s goals  This reduces labor disputes, demands on pay raises, etc. o Human Resources strategy that is non easily imitable – workforce turns into a sustainable competitive return within the low-cost carrier industry.

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What happened to People Express? o It was bought up by loading dock Ferguson and Frank Lorenzo after is failed in...If you want to get a wide essay, order it on our website: Orderessay



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