Case Study for South West Airline
Case 1: Southwest Airlines 1. What is SWA’s strategy? What does it take to execute the strategy?
Southwest’s strategy is to maintain low cost, low fares and frequent flights. SWA execute this strategy through emphasizes point to point routes, which means customers fly directly to their final destination. According to annual report of 1993, 80 percent of its customers fly non-stop to their final destination. Furthermore, SWA also pays off in shorter turnaround times and higher equipment. Therefore, this allowed southwest use low fares and frequent flights to increase passenger volume two to three times. Follow this strategy, SWA also keeps its fares as easy as possible. The business offers only two fares on a route, it also tries to price all fares the same within in a state. To further simplify its operations, SWA has never offered meal service on its flights, this also lower the cost of the business. 2. Analyze SWA’s human resource management system. How does this system link to the execution of its strategy? SWA’s human resource management system is focus on “people”. People are the competitive advantage of SWA, the human resources department deliver the resources and services to prepare their people to be winners, to support the growth and profitability of the company, while preserving the values and special culture so SWA. The company’s employees are seen as the department’s customers. One of the founder, Kelleher, he has a hands-on approach that helps make employees feel at home and comfortable. For SWA’s employee, southwest airline is their home and they are all the “family’s” memeber. Making employee feel they are part of a big faimly helps SWA better achieve its low cost, low fare, frequent flight strategy. SWA’s pilots, for instance, spend more time in the air than pilots at other airlines, also, their salary are much lower than other airline companies. Employees also routinely volunteer to hepl customers in need. Just like Harold Sirkin said,
Southwest’s strategy is to maintain low cost, low fares and frequent flights. SWA execute this strategy through emphasizes point to point routes, which means customers fly directly to their final destination. According to annual report of 1993, 80 percent of its customers fly non-stop to their final destination. Furthermore, SWA also pays off in shorter turnaround times and higher equipment. Therefore, this allowed southwest use low fares and frequent flights to increase passenger volume two to three times. Follow this strategy, SWA also keeps its fares as easy as possible. The business offers only two fares on a route, it also tries to price all fares the same within in a state. To further simplify its operations, SWA has never offered meal service on its flights, this also lower the cost of the business. 2. Analyze SWA’s human resource management system. How does this system link to the execution of its strategy? SWA’s human resource management system is focus on “people”. People are the competitive advantage of SWA, the human resources department deliver the resources and services to prepare their people to be winners, to support the growth and profitability of the company, while preserving the values and special culture so SWA. The company’s employees are seen as the department’s customers. One of the founder, Kelleher, he has a hands-on approach that helps make employees feel at home and comfortable. For SWA’s employee, southwest airline is their home and they are all the “family’s” memeber. Making employee feel they are part of a big faimly helps SWA better achieve its low cost, low fare, frequent flight strategy. SWA’s pilots, for instance, spend more time in the air than pilots at other airlines, also, their salary are much lower than other airline companies. Employees also routinely volunteer to hepl customers in need. Just like Harold Sirkin said,