Secondly, tactically and strategically, Southwest has standardized its airplane fleet. The company only own and operate Boing 737s. This helps in cutting down maintenance costs due to low training costs and low repair materials. This also creates economies of learning for pilots and maintenance employees. This cost driver capability is difficult for competitors to copy. Thirdly, in terms of Operations, Southwest has a 25 minute Turnaround time compared to the industry average of 45-60 minute. This is a key capability because airline companies can only make money when the flight is in the air. Southwest utilizes its capacities better than its competitors. As a result the company will have fewer planes and more flights out of the same planes. Finally, in terms of culture, Southwest has a strong culture. The stakeholders it value the most is employees and then customers. Labor in Southwest is unionized, and employees are motivated and cross trained. Human resource capabilities of Southwest include: training, compensations, selection, and leadership. Training, socialization, and incentive structures build up the culture. Incentive structure in Southwest is unique because of profit sharing salary system and no lay off guarantee. This builds loyalty. Southwest also has an effective selection system to check the fit of
Secondly, tactically and strategically, Southwest has standardized its airplane fleet. The company only own and operate Boing 737s. This helps in cutting down maintenance costs due to low training costs and low repair materials. This also creates economies of learning for pilots and maintenance employees. This cost driver capability is difficult for competitors to copy. Thirdly, in terms of Operations, Southwest has a 25 minute Turnaround time compared to the industry average of 45-60 minute. This is a key capability because airline companies can only make money when the flight is in the air. Southwest utilizes its capacities better than its competitors. As a result the company will have fewer planes and more flights out of the same planes. Finally, in terms of culture, Southwest has a strong culture. The stakeholders it value the most is employees and then customers. Labor in Southwest is unionized, and employees are motivated and cross trained. Human resource capabilities of Southwest include: training, compensations, selection, and leadership. Training, socialization, and incentive structures build up the culture. Incentive structure in Southwest is unique because of profit sharing salary system and no lay off guarantee. This builds loyalty. Southwest also has an effective selection system to check the fit of