Ce
Center for Logistics, Trade and Transportation
1
and
College of Business
THE UNIVERSITY OF
SOUTHERN MISSISSIPPI
Study Abroad in Panama
Coordinated by
Dr. Tulio Sulbaran
Tel: 601-266-6419 - Email: tulio.sulbaran@usm.edu
COMPARISON OF BUSINESS
STRATEGIES: COPA AIRLINES VS.
SOUTHWEST AIRLINES
Presented by:
Nicole Nettles
Tel: 228-218-1957 - Email: nicole.nettles@eagles.usm.edu
THE UNIVERSITY OF
SOUTHERN MISSISSIPPI
Study Abroad
in Panama
Jul 2012
July 2011
Center for Logistics, Trade and Transportation
And
College of Business
Video Preamble
THE UNIVERSITY OF
SOUTHERN MISSISSIPPI
Study Abroad in Panama
July 2012
Center for Logistics, Trade and Transportation
And
College of Business
Outline
1- Introduction
2- Information/Data Collection Approach
3- Case Study
4- Results and Results Impact
Similarities
Differences
5- Summary
THE UNIVERSITY OF
SOUTHERN MISSISSIPPI
Study Abroad in Panama
July 2012
Center for Logistics, Trade and Transportation
And
College of Business
Introduction
Differentiation
Strategy- an attempt at
which companies strive
to create products or
services that are
different and unique
from other products or
service in the industry
THE UNIVERSITY OF
SOUTHERN MISSISSIPPI
Study Abroad in Panama
July 2012
Center for Logistics, Trade and Transportation
And
College of Business
Introduction
Panama:
• Dollar-Based Economy
• Relies heavily on services, 1/3 of GDP
• Services include Panama Canal, banking, insurance, logistics, ports,
Colon Free Trade Zone, tourism
• Panama Canal Expansion expected to boost economy
• Unemployment Rate was 4.5% in 2011
THE UNIVERSITY OF
SOUTHERN MISSISSIPPI
Study Abroad in Panama
July 2012
Center for Logistics, Trade and Transportation
And
College of Business
Introduction
This report compares the differentiation strategies
in the airline industry. The comparison includes
the companies Copa Holdings, Inc. and
Southwest Airlines.
THE UNIVERSITY OF
SOUTHERN MISSISSIPPI
Study Abroad in Panama
July 2012
Center for Logistics, Trade and Transportation
And
College of Business
Information/ Data Collection Approach
• First form of data collection was a Internet search
• Internet Search began close to a month before
leaving
• Google Search Engine
• Specific keywords used to locate related
information
• 12 sources were chosen to complete report
THE UNIVERSITY OF
SOUTHERN MISSISSIPPI
Study Abroad in Panama
July 2012
Center for Logistics, Trade and Transportation
And
College of Business
Information/ Data Collection Approach
Information gathered from Internet Search:
• Southwest Airlines’ Seven
Secrets for Success
• BusinessDictionary.com
• CIA- The World Fact Book
• Center for Aviation
• Copa Airlines
• Nation Branding & Investment
• NCR Corporation
• The Official Klout Blog
• What makes COPA
THE UNIVERSITY OF
SOUTHERN MISSISSIPPI
• Airlines one of the most popular
airline brands in the world? An
Interview with two senior execs
• Standard & Poor’s: Southwest
Airlines Co.
• Standard & Poor’s: Copa
Holdings Inc.
• Zacks Equity Research
Study Abroad in Panama
July 2012
Center for Logistics, Trade and Transportation
And
College of Business
Information/ Data Collection Approach
• Second Form of Data Collection
was In-Person Interview
• Joseph Maugh from the University
of Florida, Commercial and
Planning Vice President at Copa
Airlines
• Interview Questions asked:
• What is the background and
goals of Copa Airlines?
• How is Copa differentiated in
the airline industry in Latin
America?
THE UNIVERSITY OF
SOUTHERN MISSISSIPPI
Study Abroad in Panama
July 2012
Center for Logistics, Trade and Transportation
And
College of Business
Information/ Data Collection Approach
• Copa differentiates itself through efficiency and the
experience customers receives
• Connectivity is also a major advantage Copa has over it
competitors, they provide flights departing to the same
locations frequently
• Efficiency, Experience, Connectivity
THE UNIVERSITY OF
SOUTHERN MISSISSIPPI
Study Abroad in Panama
July 2012
Center for Logistics, Trade and Transportation
And
College of Business
“Copa Holdings is a leading Latin
American provider of airline
passenger and cargo services
Copa Holdings Inc.:
through our tow principal
operating subsidiaries, Copa
• Located in Panama City, Panama
Airlines and Copa Airlines
• Main hub located in Tocumen
Columbia.” –Copa Airlines
Airport
Case Study
• Incorporated as a sociedad
anonima in 1998
• CIASA, 49% stake to
Continental, then reduced share
to 27.3% in 2005, and 10% in
2006, sold remaining shares in
2008 to public
• Copa purchased AeroRepulica
in 2005, expanding to 63
destinations in 29 countries
THE UNIVERSITY OF
SOUTHERN MISSISSIPPI
Study Abroad in Panama
July 2012
Center for Logistics, Trade and Transportation
And
College of Business
Case Study
Southwest Airlines:
• Headquartered in Dallas, TX
• Began as Air Southwest Co. in
1967 to provide airline services for
Texas area
• 73 locations in US
• Average flight length 969 miles
• Only utilizes Boeing 737 aircraft in
fleet of 558
• 3,200 flight per day
• Net Income $178 million in 2011
THE UNIVERSITY OF
SOUTHERN MISSISSIPPI
Study Abroad in Panama
July 2012
Center for Logistics, Trade and Transportation
And
College of Business
Results and Results Impact
Aspects Compared Between Companies:
• Overall business strategy
• Average cost for an airline ticket
• Methods for checking in and assigning customers a
location on the plane
• Service provided by airline attendants
• On-flight amenities
• Marketing strategy
• Overall mentality of the business model
THE UNIVERSITY OF
SOUTHERN MISSISSIPPI
Study Abroad in Panama
July 2012
Center for Logistics, Trade and Transportation
And
College of Business
Results and Results Impact
Similarities:
THE UNIVERSITY OF
SOUTHERN MISSISSIPPI
Study Abroad in Panama
July 2012
Center for Logistics, Trade and Transportation
And
College of Business
Results and Results Impact
Differences
THE UNIVERSITY OF
SOUTHERN MISSISSIPPI
Study Abroad in Panama
July 2012
Center for Logistics, Trade and Transportation
And
College of Business
Results and Results Impact
• The similarities in these results
are important because it can be
seen that companies all over
the world utilize the same
business strategies in order to
gain an advantage within their
respective markets. No matter
the location of the company
business works the same way,
and many companies have
utilized similar avenues to be
successful.
THE UNIVERSITY OF
SOUTHERN MISSISSIPPI
• The difference in these results
are important because we can
see that both companies have
created a sustainable
competitive advantage with the
industry utilizing a
differentiation strategy, but
have created the advantage in
two very different ways.
Study Abroad in Panama
July 2012
Center for Logistics, Trade and Transportation
And
College of Business
Summary
• Compares differentiation strategies between Copa and Southwest
• Copa uses efficiency, experience, and connectivity, Southwest
uses low costs and relaxed atmosphere
• Data was collected using an Internet search and in-person
interviews
• Similarities include: overall strategy, marketing efforts, online
services
• Differences include: ticket price, company focus, seating and
layout of the aircraft, amenities provided on the plane, employee
attitudes and atmosphere
• Both companies are exceptional examples of how successful
companies utilize differentiation strategies
THE UNIVERSITY OF
SOUTHERN MISSISSIPPI
Study Abroad in Panama
July 2012
Center for Logistics, Trade and Transportation
And
College of Business
THE UNIVERSITY OF SOUTHERN MISSISSIPPI
founded in 1910
Thanks!
THE UNIVERSITY OF
SOUTHERN
Center for Logistics, Trade and Transportation
Center forStudy
Logistics,
Trade
Transportation
Abroad
in and
Panama
And
MISSISSIPPI
July and
2011
College of Business
College of Business