South West Airlines.

Description

Mind Map on South West Airlines., created by Lyndah Kiki Jabe on 27/11/2013.
Lyndah Kiki Jabe
Mind Map by Lyndah Kiki Jabe, updated more than 1 year ago
Lyndah Kiki Jabe
Created by Lyndah Kiki Jabe over 10 years ago
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Resource summary

South West Airlines.
  1. Context

    Annotations:

    • 1. American low-cost airline based in Dallas, Texas    2. Founded in 1967 as Air Southwest by Rollin King & Herb Kelleher to provide service in the state of Texas   3. Adopted its current name in 1971    4. Offers short haul, high frequency flights with distinct service culture     
    1. Offers short haul, high frequency flights with distinct service culture
      1. American low-cost airline based in Dallas, Texas
        1. Founded in 1976 by Rollin King & Herb Kelleher
          1. Original name was Air Southwest, which was adopted to South West Airlines in 1971
          2. Problem Statement
            1. How does Southwest Airlines remain competitive among domestic airlines in the USA?
            2. STRENGTHS
              1. Competitively priced tickets.
                1. Strong relationship with airports.
                  1. Good relationship between the stakeholders and shareholder
                    1. Strongly represented and reinforced company value and culture
                    2. WEAKNESS
                      1. Lower Salaries
                        1. Do not receive many benefits
                          1. Little or no job security
                            1. Long working hours.
                            2. OPPORTUNITIES
                              1. Employees can be given more chances to work and perform as contracts are flexible for helping out low staff turnover.
                                1. Employees can earn more salary from the profit-sharing plan (compensation).
                                2. THREATS
                                  1. Increase number of low cost airlines entering US
                                    1. Increase corporate tax.
                                      1. Change in security system enforced by the FBI, CIA etc. to maintain its operating system.
                                        1. Difficult to enforce competitive layoffs/cutbacks because it is one of the most labour unionized companies.
                                          1. Work results may not be up to standards. example; takeoff preparation time may take longer than what is required.
                                            1. Work overload for pilots & ground crew as the pilots are unionised independently and the ground crew has less members .
                                            2. Recommendation
                                              1. Operate as long haul flight carrier. Use connecting flights (interline tickets).
                                                1. Strength
                                                  1. Long haul flights experience high load factors and don't need additional staffing which means more revenue for the organisations.
                                                    1. Diversification can increase Southwest;s competitiveness and market share.
                                                    2. Weakness
                                                      1. Infastructure & operating structure is not designed to accommodate long haul flight demands.
                                                        1. Customers identify the airline as inexpensive, short haul flight carrier
                                                          1. Strong presence of existing brands e.g. Delta, United Airways
                                                      2. Critical Reflection
                                                        1. is known to have low turnover rate, good working environment even though pay and benefits are minimal. the company values their employees via giving them freedom in their way of work allows the employees to enjoy themselves while working. Future innovations should be implemented due to the hight and direct companies such as improvement & rely more on technologies rather than employees
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