Southwest Airlines Craig Jarrell - PowerPoint Presentation

Slide1

Southwest Airlines

Craig JarrellKamaria HillKerrie ByrdRoss RaySlide2

Agenda

SWOT AnalysisIFE/EFE

Balanced Scorecard Strategy Map

Mission/Vision

Southwest Airline Recommendation

Acquiring LaGuardia

QuestionsSlide3

SWOT

MATRIXS-StrengthGreat work environment

Superb Customer Service

Guaranteed lowest prices than competitors

Quick landing/departure turning around (30mins)

Made one fifth of their flights one stopW- Weakness Flying into unprofitable routes that causes a monetary lossDoes not Award Program Benefits for being a frequent flyerDoes Not Offer booking by classSWA ‘s flight to LaGuardia is more expensive than the major booking websitesO- OpportunityNot being a part of major websites such as Orbitz.com Possibility to generate enough revenue from eight flights to cover the cost for the slot purchase According to Daryl Kaurse, long term employees get the chance to work and gain experience in New York CityIn need of service within New York City SWA’s already worker- friendly environment will allow them to capitalize on employees gaining experience in a new locationSuperb customer service and low prices would ensure quality service with major websites SWA quick landing/ departure times fits right into LaGuardia’s time slotsSWA should offer Award Program Benefits and consider booking flights by class to penetrate NYC Airports and competitorsSWA should partner up with major websites such as Orbitz.com to increase profit marginsT- Threats Other low-fare providers such as JetBlueAn improvement in the recession and travelers do not have to be cost efficient and more willing to travel outside the statesVP of Properties pointed out that 50 % of all delays in the U.S. derive from the three major New York Airports.New York Airports have a High Cost Structure: -1. Flight delays cost SWA -2. Airport has high landing fees -3. High wages must be paid to employees in the city.Reputation being damaged by entering into NYC Airport StructureContinuing to keep prices low while offering quality service will keep competition scarce.Reducing the amount of lay over flights to combat high delay percentage and NYC High Cost StructureMaintaining high quality customer service to combat bad reputation from NYC Airport Structure SWA should survey other low-fare providers such as JetBlue to reduce flight prices to LaGuardiaSWA should look into airports within close proximity of NYC to balance out NYC Airport High Cost Structure, high delay percentage and reduce monetary loss

External Factors

Internal Factors Slide4

Opportunities:

Weight

Rating

Weighted Score

Opening slots in LaGuardia

0.1430.42Become a part of a major websites such as Orbitz.com 0.1710.17In need of direct flight within New York City 0.1440.56Provide award programs for their frequent flyers0.1120.22Expanding its market into other major cities and outside the U.S0.1120.22EFE Matrix Threats:An improvement in the recession and travelers do not have to be cost efficient and more willing to travel outside the states 0.0620.12JetBLue is also a low-fare provider0.0820.16New York Airports have a high cost structure (landing fees, high wages in city) 0.0730.21Gas and oil price fluctuations0.0620.18Flying into unprofitable routes that causes a monetary loss0.0630.18Total1.0Slide5

Strengths

WeightRating

Weighted Score

Great work environment

.10

4.40Lowest price against competitors.184.72Quick landing/departure turn around.083.24Provide free luggage check-in .053.15Flight schedule availability up to next year .053.15Weaknesses   Flying into profitable routes.131.13No award programs for being a frequent flyer .091.09Does not book by classes .201.20The flight from LaGuardia is more expensive .072.14Only have five between LaGuardia and Chicago Midway and three between LaGuardia and Baltimore/Washington .052.10Total1.00 2.32I

FE

Matrix Slide6

Balanced Scorecard

Strategic Objective:Acquiring LaGuardia

Objectives

Measurement

Target

InitiativeInternal Customer SatisfactionEmployees & Company Culture FeedbackUse culture to provide customer service Employee IncentivesFun “LUVing” AttitudeFinancial  Generate ProfitsIncrease in Flights Flight RevenuesLanding & Fuel CostsIncrease % of ticket salesReduce # of flight delays Low costs strategiesCustomer   Customer CommitmentsOn-Time DeparturesService to NY % of Delayed FlightsAmt. of Returning Customers #1 in prices and flight turnaroundsBuilding Relationships Customer Loyalty ProgramsGrowth and Development    More FlightsService in larger cityAttract more customers Success of serving LaGuardiaBring Southwest experience to New York

Serve the New York areaCustomer ServiceEmployeesCulture

Profitability

8 Flights Daily

Airline Delays

High Costs Structure

Stronger Commitment

Flights are on time

Service to New York

Expansion

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.Slide7

QUESTIONS