Southwest Airlines - Key Points for

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Iqra University Gulshan Campus M. Phil: Strategic HRM Presentation Topic: Southwest Airlines: A Case Study Linking Employee Needs Satisfaction and Organizational Capabilities to Competitive Advantage written by Roger Hallowell Reference: Human Resource Management, 1996, Vol. 35(4), p. 513-534 Presented by: M. Shahnawaz Adil Dated: Tuesday, March 01, 2011 Course Facilitator: Mr. Ahsan Durrani Abstract (as written by Roger Hallowell): This article analyzes the sources of Southwest Airlines’ competitive advantage using an integrative approach, employing economic analysis tools to illustrate the roles of commitment and organizational capabilities in delivering competitive advantage at Southwest. A framework is presented…show more content…
We will go in with 10 or 12. That eats up a lot of airplanes and capacity, so you cannot open a lot of cities. You hit them with everything you’ve got in one or two places instead of trying to fight them everywhere’. 16. SWA’s low-fare, high-frequency, point-to-point service was received very well in the western markets, including New Mexico, Arizona, Nevada, and California. As of early 1991, the Company had 48 percent of its system capacity, as expressed in available seat-miles (ASMs), in this geographic region. This region contained 11 cities, including El Paso, and was the focus of SWA’s expansion activities during the late 1980s. Service was initiated in Oakland in 1989 and in Burbank and Reno in 1990. Despite fierce competition in these markets, SWA was successful with its formula of low fares and frequent flights. 17. During 1990, SWA acquired more gate facilities at Oakland, nearly doubling the capacity for future Oakland flight operations. 18. In 1991, Phoenix (ranked 3rd) and Las Vegas (ranked 4th) in SWA’s system in terms of originating customer boardings. The Company management felt this region should continue to provide expansion opportunities in the future (ibid). 19. The Heartland was SWA’s most mature region. From its original ‘Texas Triangle’ – San Antonio, Dallas, and Houston – SWA became a dominant force in short-haul, point-to-point travel to the destination it serves. As of early 1991, the company captured a 60 percent
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