Harvard business review southwest airlines case study

The logic is if the employees are valued, they will treat the customers well and that will spread the reputation of the Airlines further.

southwest airlines: 1993 (a)

Fly eight round trips and get one free. Historically there have been no complex procedures or rules to memorize. Rather than focusing on increasing the load factor, the airlines started to work towards increasing the overall productivity with increased profitability through economies of scale.

Case 25 southwest airlines in 2016

Check-in online on your smartphone. This leaves South West with not much competition in the industry. Hence, we can see how Southwest Airlines was successful in able to maintain both Cost effectiveness as well as Customer loyalty and retention, through its innovative and foresighted strategies. Be careful, Southwest. How do you envision a change in your current business model before a crisis forces you to abandon it? It is conceptually simple, meaning that the mental model that it operates by is very easy for passengers to understand. The real problem for leaders is doing both, simultaneously. On average there are 94 employees per Southwest aircraft in contrast to competitors who have , and the Southwest staff serve on average passengers per year compared to competitors It remained the core for globalization due to its involvement in international investments and world trade.

The benefits it gives it employees, include: profit-sharing and empowering employees to make decisions. Need to swap a ticket for another date or grab an earlier flight? There are other hungry airlines offering next generation customer experiences JetBlue, Virgin America that would love to take passengers from Southwest in a highly commodified, competitive market.

Southwest airlines case study strategic management pdf

How would you characterize the business model of Southwest Airlines? Rather than focusing on increasing the load factor, the airlines started to work towards increasing the overall productivity with increased profitability through economies of scale. Fly eight round trips and get one free. Print Loading Opinions expressed here are his own. But during the early years of s the industry was hit with recession, Gulf war and the effects of deregulation in Southwest Airlines is popular for asking its candidates one time to change from suit clothing to Bermuda shorts. It also has a strong brand, built on the promise of low prices, convenience, and a no-frills-but-pleasant experience. Follow him on Twitter. Their main aim is to offer great service at the lowest cost. The three-box framework makes leading innovation easier because it gives leaders a simple vocabulary and set of tools for managing and measuring these different sets of behaviors and activities across all levels of the organization. Need to swap a ticket for another date or grab an earlier flight? Keeping the workforce number minimal, they have cut off a major fraction of labor costs incurred generally by other carriers, whilst not letting any shortcoming come in smooth running of operations.

Southwest is my favorite airline: low prices, happy staff, lots of flights were I need to go for most trips, good website, convenient policies. Leaders already know that innovation calls for a different set of activities, skills, methods, metrics, mind-sets, and leadership approaches.

That was it.

southwest airlines business school case study

Point-to-point service allows for direct nonstop routing by minimizing connections, delays and total trip time. Be careful, Southwest. Those who were fast enough were selected.

Harvard business review southwest airlines case study

In the number of passengers decreased with an effect on the financial results which were already at war with the excess capacity losses due to overbuying of aircrafts in the s. What are the barriers to imitation here? It also has a strong brand, built on the promise of low prices, convenience, and a no-frills-but-pleasant experience. Check-in online on your smartphone. But Southwest is playing with fire. Point-to-Point Hub and Spoke Transit System Eliminates the need for connection, Is dependent upon hub connections, reduces travel time and less prone leading to increased travel time to delay, with minimum employees. None of them would be possible if the ground staff is not dedicated. Their main aim is to offer great service at the lowest cost. Its method of offering differentiated products like Rapid Rewards frequent flyer program have made it stand apart in the LCC sector.
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Southwest Airlines