Distinctive capabilities of southwest airlines

The committee also has a mission statement: It is not secondary to the product; it is the product. Southwest has been able to successfully implement its fuel hedging strategy to save on fuel expenses in a big way and has the largest hedging position among other carriers.

Then you can allow Employees to be themselves and make decisions about Customer service based on common sense and their natural inclinations.

Pugh, Time Magazine, Oct 28th issue, Vol. This culture is supported through employee encouragement to do the extra to satisfy the customer.

The Southwest mission statement is unique in that it recognizes the importance of its employees within the broader business strategy, which emphasizes superb customer service and operational efficiency. Technology Southwest utilizes technology in many ways to fulfill its business objectives and maintain its efficient operations.

Even though, Southwest is playing a little catch-up with other airlines such as Air Tran, Alaska and Champion Airlines, in many cases they are able leapfrog to more sophisticated applications easily having waited longer.

If airlines can control the cost of fuel, they can more accurately estimate budgets and forecast earnings. Southwest Airlines is a fine example of a company that is committed to its core competencies — efficient operations to drive its low cost structure, outstanding delivery of customer service and innovative HR management practices.

According to its CEO, technology equals productivity. There are between 75 and projects in the works each year supported by approximately IT employees.

Southwest Airlines Operations – A Strategic Perspective

The bar code hardware to scan the boarding passes has been deployed. The old process was manual that involved finding the information, scrolling through several software screens from reservations to check-in to boarding.

So it installed about touch screen ticket readers powered by Dell OptiPlex desktops. It can then be concluded that the customer service that is inherent to Southwest is a part of its culture. Southwest needs to be mindful of the fact that a certain approach that has been successful for its competitor may not be necessarily work to its advantage.

Once the bar code on the boarding pass is scanned at the terminal gate it checks off the person from the passenger list in real time. The state of the industry also suggests that airlines that are hedged have a competitive advantage over the non-hedging airlines.

Software Upgrades Software applications, such as those used by clerks to check in passengers, are being replaced.

Most of its flights are short hauls averaging about miles. It maintains a relentless focus on high-performance relationships and its people-management practices have been the key to its unparalleled success in the airline industry.

In comparison, Southwest has airplanes to consider and that represents an investment decision at a whole new dimension.

The company uses very little off-the-shelf software. The employees reciprocate the respect, loyalty and trust that Southwest demonstrates.

Therefore by its relentless pursuit for lowest labor costs, Southwest is able to positively impact its bottom line revenues. This includes Herb Kelleher, who has been known for helping out baggage handlers on Thanksgiving.

It is through emphasizing the customer and employee that Southwest is able to differentiate itself from others in the airline industry. Extensive procedures are employed to hire for positive attitude and dedication. The answer is that it is not.

Is it common for customers of other airlines to rave about their special service? Southwest has emerged very successful, despite the most troubled times in the airline market. Its fleet consists exclusively of Boeing jets. On a more technical level, each employee or group within Southwest has his or her own customer.

This shows the quality of relationship that Southwest has with its employees and with the unions that represent them. Airlines that want to prevent huge swings in operating expenses and bottom line profitability choose to hedge fuel prices. Carriers like Southwest have a tremendous cost advantage over network airlines simply because their workforce generates more output per employee.

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Bacon and David G. There are numerous accounts of passengers who have received exceptional treatment from Southwest employees.

The company affords the same respect to its employees that is provided to its customers.Southwest Airlines is a fine example of a company that is committed to its core competencies – efficient operations to drive its low cost structure, outstanding delivery of customer service and innovative HR management practices.

Jeff Prokaski, Ryan Trompeter, Sam Prentice, Matt Petermann, & Adam Newsom Southwest Airlines: Core Competencies & Internal Sources of Competitive Advantage. Southwest Airlines 1. Culture, Value, and Operating Practices Barry Cynthia Dedy Fitrie Indah Made Novita Rival Presented by: MBM Group 3 Staffing the Organization Core Competencies and Competitive Capabilities Matching the Organization Structure to Strategy Southwest ’ s Capability Southwest avoided layoffs (no-layoff policy.

and its employees. The distinctive competencies Southwest has are its flexible and motivated staff and its low cost operations.

3. Southwest’s resources, capabilities, and distinctive competencies translate into superior financial performance because they lower costs tremendously lower than other companies. These low costs raise return on %(2). Southwest Airlines Presentation. Group 4 by Shin Herbast on 4 January Tweet. Comments (0) Southwest Capabilities Teamwork and cooperation among its employees.

Mastering the basic of transportation value. Working efficient and effectively Southwest's Distinctive Capability: It's Operational Choice. Start studying Chapter 3. Learn vocabulary, terms, and more with flashcards, games, and other study tools.

Search. distinctive capabilities B) intangible resources C) tradeoff protection D) core competencies. Answer: C Southwest Airlines is an airline industry leader. It has protected its competitive advantage by _____.

Distinctive capabilities of southwest airlines
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