Name at Least Two Things That Southwest Is Doing Efficiently
* 1. Just Plane Smart Harvard Business School – Case Study Summary Abhishek Mehra Balaji P Saruabh Ranadive Sarang Bhutada * 2. The setting It’s summer of 1993 Southwest is expecting delivery of two uncommitted planes McGlade needs to find a way, to put these planes in operation, keeping the organizational objectives are intact Final decision would have to preserve the Southwest culture and spirit About Southwest Started as a intra-state operator in Texas Budget airline philosophy, survived a severe price-war Operating out of Dallas’s Love Field airport, hence the ticker LUV 7 th largest in the country by April 1993 Expanded to become a national carrier, serving major cities Short-haul, high-frequency, low-cost strategy 12 time winner of the coveted triple crown award * 3. The Southwest Model * 4. Hiring - Identify attitudes rather than skills Rigorous interviewing Peer hiring People skills of Southwest Structure Centered on team-building Cross-training encouraged Broad latitude offered 10% of stock held by employees Advancement Recognition, an important element Celebrations quite common Most promotions internal Compensation Varied with position At par with industry norm Pension through a profit-sharing plan Culture H A “Patina of Spirituality” ugs common across office Casual dress code Field visits Strong guidelines to everyone At par with industry norm Pension through a profit-sharing plan * 5. “ After lengthy deliberation at the highest executive levels, and extensive consultation with our legal department, we have arrived at an official corporate response to Northwest Airlines Claim to be number one in Customer Satisfaction…… … Liar Liar. Pants on Fire” * 6. Product: Southwest’s product is travel Competition - not just other airlines but any mode of transportation. frequent, conveniently timed flights and low fares. point-to-point route system as compared to hub-and-spoke direct nonstop Target Market: Market Segmentation cost- and