ºÝºÝߣ

ºÝºÝߣShare a Scribd company logo

Southwest Airline

?
?
G
glenferry

Southwest Airlines was founded in 1967 to take advantage of deregulation in the airline industry by utilizing point-to-point routes with low fares rather than traditional hub-and-spoke systems. Over several decades, Southwest expanded its fleet from four to over 400 planes serving over 50 cities. It developed a low-cost business strategy focused on efficiency and passing savings to customers. Looking to the future, Southwest will aim to strengthen its brand, pursue vertical and horizontal integration opportunities, and continue optimizing its low-cost business model to remain competitive in the dynamic airline industry.

1 of 16
Downloaded 117 times
Southwest Airlines 9 July 2005
History of Southwest Airlines 1967 ?F Herb Kelleher Gary Kelly 1971 Texas F 3 1973 F? F? ? F F ? ? 1977 F F F Down Jones (LUV)
History of Southwest Airlines 1979 F ? ? ? Texas 1990 ? F ?? F $1 F 1994 ? ? ? Morris Air F ? Ticketless Travel 1996 ? F www.southwest.com 2000 ? ? F F 5 2005 ? 31,000 Boeing 429 60 31
Airlines Industry¡¯s Fact with Southwest Airlines F ? ¡°The lowest cost provider in the industry¡± ?F F F? F ? F ? ? Express way F F F F ? ? F ? F F ? FF ? ? ? F F F ? F F ? F ? ? ? ? F
Southwest Strategies 1. ? ? F F F F 2. ? F ? F 3. ? F ? F F 4. ? F FF F ?
Low Cost Airlines in Industry Domestics Airlines Jet Blue Airways Travelocity Air Tran Airways International Airlines Ryanair - Ireland Easy Jet - UK Virgin Blue Australia Air Asia Malaysia Nok Air - Thailand
Overall US Airlines Performance in 2004 Domestic Passengers Carried Millions 90 80 70 60 50 40 30 20 10 0 l s t d t ta an t ta es es es ay te en el ic W hw w irw ni D er tin th U a ut m A or ic on So A S er N C U m A
Southwest 34-Year Comparison 1971 1999 2004 Size of Fleet 4 306 417 Number of Employees 195 29,005 31,000 Number of passengers carried 108,554 52,600,000 70,900,000 Number of cities served 3 55 59 Number of trips flown 6,051 602,578 1,022,000 Total Operating Revenues 2,133,000 4.2 billion 6.5 billion Net Income (Losses) (3,753,000) 433,400,000 313,000,000
Question 1 At the beginning, what forces in the environment most affected Southwest Airlines, and what opportunity was Southwest founded to take advantage of? ? ? ?F ? Southwest F ? F ? ? F F ? F 3 F? F ? F
Question 1(continue) Opportunity which Southwest founded to take advantage of ¨C Southwest F F ? ? ? F ? F ? ? F ? ¨C Southwest F F F ? ? F ? ? ? ? ¨C Southwest Boeing 737-200 F ? ? Boeing F? F
Question 2 How would you chart the development of Southwest¡¯s business-level strategy over time? ? F ? F ? ? ? F F F F ? F F F F ?
Question 2 (Continue) Business-level strategy over time ? F Boeing F 737 F? F? F ? ? F ? ? ? F ? ? ? F Hub-and-Spoke ? F Point-to-Point F ? F ? F ? F ? F F F ? ?? ? F ? ? F ? F
Question 3 What kinds of dynamics characterize competition in the airline industry ? (Security) F (Ticket price) F (Customer satisfaction) F ? (Aircraft Maintenance) F (Air-Traffic Delays)
Question 4 & Question 5 What do you think the future holds for Southwest? If you were the CEO of Southwest Airlines. What would be your action plan in the future? ? Brand Southwest Airlines F ? ? F Vertical Integration Horizontal Integration
Question 4 & Question 5 (continue) ? F ? ? F ? F ? F F ? ? ? ? ?
Thank you very much.

More Related Content

Southwest Airline

  • 2. History of Southwest Airlines 1967 ?F Herb Kelleher Gary Kelly 1971 Texas F 3 1973 F? F? ? F F ? ? 1977 F F F Down Jones (LUV)
  • 3. History of Southwest Airlines 1979 F ? ? ? Texas 1990 ? F ?? F $1 F 1994 ? ? ? Morris Air F ? Ticketless Travel 1996 ? F www.southwest.com 2000 ? ? F F 5 2005 ? 31,000 Boeing 429 60 31
  • 4. Airlines Industry¡¯s Fact with Southwest Airlines F ? ¡°The lowest cost provider in the industry¡± ?F F F? F ? F ? ? Express way F F F F ? ? F ? F F ? FF ? ? ? F F F ? F F ? F ? ? ? ? F
  • 5. Southwest Strategies 1. ? ? F F F F 2. ? F ? F 3. ? F ? F F 4. ? F FF F ?
  • 6. Low Cost Airlines in Industry Domestics Airlines Jet Blue Airways Travelocity Air Tran Airways International Airlines Ryanair - Ireland Easy Jet - UK Virgin Blue Australia Air Asia Malaysia Nok Air - Thailand
  • 7. Overall US Airlines Performance in 2004 Domestic Passengers Carried Millions 90 80 70 60 50 40 30 20 10 0 l s t d t ta an t ta es es es ay te en el ic W hw w irw ni D er tin th U a ut m A or ic on So A S er N C U m A
  • 8. Southwest 34-Year Comparison 1971 1999 2004 Size of Fleet 4 306 417 Number of Employees 195 29,005 31,000 Number of passengers carried 108,554 52,600,000 70,900,000 Number of cities served 3 55 59 Number of trips flown 6,051 602,578 1,022,000 Total Operating Revenues 2,133,000 4.2 billion 6.5 billion Net Income (Losses) (3,753,000) 433,400,000 313,000,000
  • 9. Question 1 At the beginning, what forces in the environment most affected Southwest Airlines, and what opportunity was Southwest founded to take advantage of? ? ? ?F ? Southwest F ? F ? ? F F ? F 3 F? F ? F
  • 10. Question 1(continue) Opportunity which Southwest founded to take advantage of ¨C Southwest F F ? ? ? F ? F ? ? F ? ¨C Southwest F F F ? ? F ? ? ? ? ¨C Southwest Boeing 737-200 F ? ? Boeing F? F
  • 11. Question 2 How would you chart the development of Southwest¡¯s business-level strategy over time? ? F ? F ? ? ? F F F F ? F F F F ?
  • 12. Question 2 (Continue) Business-level strategy over time ? F Boeing F 737 F? F? F ? ? F ? ? ? F ? ? ? F Hub-and-Spoke ? F Point-to-Point F ? F ? F ? F ? F F F ? ?? ? F ? ? F ? F
  • 13. Question 3 What kinds of dynamics characterize competition in the airline industry ? (Security) F (Ticket price) F (Customer satisfaction) F ? (Aircraft Maintenance) F (Air-Traffic Delays)
  • 14. Question 4 & Question 5 What do you think the future holds for Southwest? If you were the CEO of Southwest Airlines. What would be your action plan in the future? ? Brand Southwest Airlines F ? ? F Vertical Integration Horizontal Integration
  • 15. Question 4 & Question 5 (continue) ? F ? ? F ? F ? F F ? ? ? ? ?
  • 16. Thank you very much.