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Southwest Airlines Strategic Plan Essay

Decent Essays
Southwest Airlines’ Strategic Management

Chungsun Park
Nonhanhla Nene
Mohit Khatri
Junbai Ma

HOS 407 – Strategic Management
Dr. Richard L. Valente
12/12/2011
Table of Contents Executive Summary 3 Mission, Vision, Values, and Goals 4 Organizational Structure 5 Management Process and Roles 6 Porter’s Five Forces 6 Threat of New Entrants 6 Threat of Substitute Products 8 Bargaining Power of Suppliers 9 Bargaining Power of Buyers 10 Rivalry 11 The Roots of Competitive Advantage 12 Distinctive Competencies 12 Capabilities 15 Competitive Advantage, Value Creation, and Profitability 16 The Value Chain 19 Primary Activities 19 Support Activities 20 The Building Blocks of Competitive Advantage 21
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Also to be an airline carrier that has the most productive workforce to guarantee the best flight possible for each and every passenger” (“Southwest Airlines Vision Statement,” 2006).

Values * Value 1: Work should be fun, it can be play, enjoy it * Value 2: Work is important, don’t spoil it with seriousness * Value 3: People are important, each one makes a difference
(“Southwest Airlines,” 2009)

Goals * To ensure the highest quality Customer Service in the air or on the ground * To be ready to help customers under any circumstances * To ensure you make it from point A to point B safely * To stay the most successful among low-fare, high frequency point-to-point carrier.

Gary Kelly (President & CEO) with his people
Organizational Structure

(“Effective Management at Southwest Airlines,” 2010)
Management Process and Roles

(“Effective Management at Southwest Airlines,” 2010)

Porter’s Five Forces

Threat of New Entrants

In the last ten years, airline industries have suffered due to the horrible economic recession and unsustainable fuel prices, which is the major threat to the airline industry. The airline industry heavily relies on fuel prices; therefore, high priced fuel scares existing airline industries and threatens their top management’s decision to reduce operating expenses including wages, material costs, customer satisfaction costs, and sales
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