A Case Study
Presented by:
Adarsh | Divij | Abhishek | Chhavi | Mani
 World’s largest low
cost carrier
 Established in 1967, it is headquartered in Dallas, Texas
 “Make Love. Not War.†had become its theme – called as “ Love
 Has ‘LUV’ as its stock ticker symbol as well!
Airlineâ€
The Southwest Model
Use nonconventional
models for
low cost
Have fun
together
Treat
employees
as family
Controlled
solid growth
Hire people
who form
the fit
Involve
employees
Strategies
Arenas
Vehicles
Differentiation
Staging
Economic Logic
Strategies
Arenas
Vehicles
Differentiation
Staging
Economic Logic
Arenas
SW airlines has always focused on the
domestic airline market of the US with
complete focus on being efficient and a
leader in the short haul flight markets.
Also, it targeted margin expansion as one
of its goals in 1997.
Its mission includes dedication to the
highest quality of ...view middle of the document...
Placing special emphasis on employee
relations , training employees and a
rigorous selection process(less than 5%
selection rate) ensures that they always
get the best employees who replicate the
good behavior as they receive from the
organization.
Strategies
Arenas
Vehicles
Differentiation
Staging
Economic Logic
Staging
SW is not a company which has
emphasized growth as its major
objective(a “go-slow†philosophy) and
makes it a point to not enter markets
unless
it
perceives
favorable
conditions(which range from wishes of
the local community to the availability of
an appropriate labor supply).
Strategies
Arenas
Vehicles
Differentiation
Staging
Economic Logic
Economic Logic
SW airlines has always been categorized
as a Low Fare/No Frills airline, while still
providing its customers with a high level
of convenience and service. Also, it
widens its markets by attracting large
number of patrons who relied on ground
transportation and also targeting markets
in which it had a clear competitive
advantage, all of which led to the airlines
having a return of over 21,000%
compounded annually for the 20-year
period between 1972 and 1992.
Strengths
 Point-to-point service strategy increases revenues
 Strong fleet base enhances ability to deliver effective
service
 Integration of AirTran's network and operations to
enhance growth prospects
Weakness
 Heavy dependence on passenger revenues could
increase risk
 Lawsuits and litigations could adversely affect
operating results
 Dependent on single aircraft and engine supplier could
impact the operations
Opportunities
• Network expansion initiatives to create a positive
impact on topline performance
• Positive outlook for the global tourism industry
 Favourable outlook of global air freight market could
help to grow sales and profit
Threats
 Intense competition could negatively impact margins
 Stringent government regulation could increase
operating costs
 Consolidation in the airline industry may impact
business performance
Thank You
