Essay Southwest Airlines

Decent Essays
Sin Ho Man
MGMT 3110 L1
Case Report: Southwest Airlines
What is SWA’s competitive strategy? What does it take to execute the competitive strategy?
The SWA has adopted ‘Cost Leadership’ as its competitive advantage. And it has achieved low cost through numerous ways.
To commence with, the Southwest workforce routinely turn around an aircraft in only 15 minutes and its gates are manned by a single agent and have a ground crew of six or fewer, which are much lower than other airlines. In other words, the SWA needs less employees to handle its flight but each employee can serve more customers, compared with other airlines.
Also, SWA emphasized point-to-point routes and the use of less congested airports in order to improve
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With the aid of these characteristics, SWA can easily understand what kind of people it is search for. As a result, the suitability and the ease of adapting to the new environment of the new employees could be enhanced.
In the aspect of training, as culture is an important element in the competitive strategy of SWA. Hence, all the training in Southwest University has an emphasis on teamwork and team building. Particularly in training those new hires, activities are designed to get new employees enthused and excited while introducing them the history, principles, values, mission and culture of the SWA.
Also, Front-line Forum is also held for senior individuals discuss how the company is doing and how it was changed. By investigating the question “Have we delivered what we have promised about the culture and spirit to employees”, remedial actions can be taken to keep the culture alive.Sin Ho Man
3. How serious is the competitive threat from Continental and United? Please explain.
What issues should Ann raise at the meeting? What would be your recommendations?
The competitive threat from Continental and United is not serious. Both airlines intended to imitate SWA of its position and practices, Continental Airlines launches Continental Lite to concentrate on short-haul, low fare flights whilst United Airlines begins its similar branch called ‘The Shuttle’. However, these two competitors cannot successfully
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