Presented by :- (Group No 4)

Deep Dave..(05) Nikhil Kumar.(29) Vikas Nandanwar..(36) Smital Sail..(46)

 Incorporated in TEXAS Commenced Customer service on June 18,1971 Provides service to 60 Airports in 31 States throughout US Entrenched as the NATIONS low fare & high Customer Satisfaction Airline Lowest Operating Cost structure in Domestic Airline Industry Total Operating Revenue (2004)---$6.5 .From Passenger load factor

19742005 32 consecutive years of Profitability ..Year-end Result (2005) Since 2002 Listed in 100 Best Corporate Citizens...Business Ethics Magazine

In 2004 Best Bonus Promotion & Best Award RedemptionInsideflyer Magazine

In 2005 No. 1 in Customer Satisfaction...ACSI In 2005 (9th consecutive year) Most Admired Airline in the world..Fortune Magazine

1. 2. 3.

What is Southwests strategy? What is the basis on which Southwest builds its competitive advantage? How do Southwests control system help execute the firms strategy?

 Low cost leadership strategy

Online Presence Ding! (Desktop Application)

 Low operational Cost

Short haul approach Point to point approach (Unlike others using HUB & SPOKE Model) Reduced head count per aircraft(from 85 to 74) Uses less congested airports Turnaround time for takeoff and crew is lesser (20-25 min) Hedged 85% of its Fuel & oil needs

 Philosophy followed : Keeping employees happy & Satisfied In 2004---Hired 1,706 employees Unique recruitment policyPilots hired Pilots & Gate agents hired Gate agents Highest paid (Crew paid per Trip) More than 1,000 Married couples (2,000 Employees) worked Pilots did not belong to any National Union Low employee turnover

 Avg Airfare---$91.15
60% Revenue generated through Direct sales

Southwest offered $126 mn in Profit SharingIn 2003

 Strives for goal congruency Low cost leadership by Implementing Short & Medium haul Flights Encourage on-line booking Ensuring lesser time spent at the gate Hedging of fuel and oil More of Direct Sales of Tickets

 Open and Inclusive Culture Unique Hiring process Profit Sharing Plan Encourages Pro-activeness Task control through Automation