South-West Airlines

Group E

Mission statement

Synchronised mission
statement for both
customers and employees
Simple and easy

Better

Customers

Employees

Non-alignment with business

strategy
Doesnt reflect vision for
growth and expansion

Shortfalls

The mission of Southwest Airlines is dedication to the highest quality of

Customer Service delivered with a sense of warmth, friendliness, individual
pride, and Company Spirit.
Weare committed to provide our Employees a stable work environment with
equal opportunity for learning and personal growth. Creativity and innovation are
encouraged for improving the effectiveness of Southwest Airlines. Above all,
Employees will be provided the same concern, respect, and caring attitude within
the organization that they are expected to share externally with every Southwest
Customer.

Ideal Mission statement Vs.

SWAs
Customers
Products/Services
Markets

Customers
The mission of Southwest Airlines is dedication to
the highest quality of Customer Service delivered
with a sense of warmth, friendliness, individual
pride, and Company Spirit.

Technology
Concern for
profitability, growth

Philosophy
Concern for employees

Employees
Weare committed to provide our Employees a stable
work environment with equal opportunity for learning
and personal growth. Creativity and innovation are
encouraged for improving the effectiveness of
Southwest Airlines. Above all, Employees will be
provided the same concern, respect, and caring
attitude within the organization that they are expected
to share externally with every Southwest Customer.

Strategy & Competitive

advantage

Porters Generic Competitive Advantage:

Adopted cost leadership strategy

Pricing strategy: Two-tiered pricing strategy with low cost

Product strategy: No frills approach, no hub and spoke strategy, low
cost

Place strategy: Short haul (less than 500 miles), Booking on basis of
online ticketing and vending machines

HR strategy: Employee profit sharing, open environment for

innovation and creativity, university trainings and recognition, low
turnover

Operations strategy: Fuel hedging, Point to point flight, faster

turnaround time of 15 mins , frequent flights, multitasking of employees

Other competitive advantage

Dedicated and loyal employees

Least customer complaints & strong customer service base
Focus and improvements in customers feedback
Strong financial position

Future strategies

Retain current cost leadership and differentiation

strategy
Retain employee and motivate them
Domestic market expansion esp. N-E
International market expansion

Thank you!

ANNEX

Competitive advantages

Technology : turbine cleanings

online reservation, same type of fleet used (Boeing 737) etc
Cost efficient operations
Dependency on single market
Fast aging of fleets
Not strong reservation system for international expansion
Untapped domestic markets
Growing demand for int'l air travel
Growth in U.S. Airlines industry in the long term
Competitive pressure
Increased safety regulations
Rise in aviation fuel cost
Federal tax burden
Alternative means of transportation