Southwest
Airlines
Craig Jarrell
Kamaria Hill
Kerrie Byrd
Ross Ray
Agenda
• SWOT Analysis
o IFE/EFE
• Balanced Scorecard Strategy Map
o Mission/Vision
• Southwest Airline Recommendation
o Acquiring LaGuardia
• Questions
SWOT MATRIX
Internal
Factors
External
Factors
S-Strength
W- Weakness
•
Great work environment
•
Flying into unprofitable routes
that causes a monetary loss
•
Superb Customer Service
•
•
Guaranteed lowest prices than
competitors
Does not Award Program
Benefits for being a frequent
flyer
•
Quick landing/departure turning
around (30mins)
•
Does Not Offer booking by class
•
•
Made one fifth of their flights one
stop
SWA ‘s flight to LaGuardia is
more expensive than the major
booking websites
•
SWA should offer Award Program
Benefits and consider booking
flights by class to penetrate NYC
Airports and competitors
•
SWA should partner up with major
websites such as Orbitz.com to
increase profit margins
O- Opportunity
• Not being a part of major websites such as Orbitz.com
•
•
•
SWA’s already worker- friendly
environment will allow them to
capitalize on employees gaining
experience in a new location
•
Superb customer service and low prices
would ensure quality service with
major websites
•
SWA quick landing/ departure times
fits right into LaGuardia’s time slots
•
Continuing to keep prices low while
offering quality service will keep
competition scarce.
•
SWA should survey other low-fare
providers such as JetBlue to reduce
flight prices to LaGuardia
Reducing the amount of lay over flights
to combat high delay percentage and
NYC High Cost Structure
•
SWA should look into airports
within close proximity of NYC to
balance out NYC Airport High Cost
Structure, high delay percentage
and reduce monetary loss
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 City
• In need of service within New York City
T- Threats
•
•
•
•
•
Other low-fare providers such as JetBlue
An improvement in the recession and travelers do not have to be cost efficient and more willing to travel outside
the states
VP 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 Structure
•
•
Maintaining high quality customer
service to combat bad reputation from
NYC Airport Structure
EFE Matrix
Opportunities:
Weight
Rating
Weighted Score
•
Opening slots in LaGuardia
0.14
3
0.42
•
Become a part of a major websites such as Orbitz.com
0.17
1
0.17
•
In need of direct flight within New York City
0.14
4
0.56
•
Provide award programs for their frequent flyers
0.11
2
0.22
•
Expanding its market into other major cities and outside the U.S
0.11
2
0.22
Threats:
•
An improvement in the recession and travelers do not have to be cost
efficient and more willing to travel outside the states
0.06
2
0.12
•
JetBLue is also a low-fare provider
0.08
2
0.16
•
New York Airports have a high cost structure (landing fees, high wages in
city)
0.07
3
0.21
•
Gas and oil price fluctuations
0.06
2
0.18
•
Flying into unprofitable routes that causes a monetary loss
0.06
3
0.18
Total
1.0
IFE Matrix
Strengths
Weight
Rating
Weighted Score
• Great work environment
.10
4
.40
• Lowest price against competitors
.18
4
.72
• Quick landing/departure turn around
.08
3
.24
• Provide free luggage check-in
.05
3
.15
• Flight schedule availability up to next year
.05
3
.15
• Flying into unprofitable routes
.13
1
.13
• No award programs for being a frequent flyer
.09
1
.09
• Does not book by classes
.20
1
.20
• The flight from LaGuardia is more expensive
.07
2
.14
• Only have five between LaGuardia and Chicago Midway and
three between LaGuardia and Baltimore/Washington
Total
.05
2
.10
Weaknesses
1.00
2.32
Balanced Scorecard
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.
Strategic Objective:
Acquiring LaGuardia
Internal
Customer
Service
Employees
Financial
Culture
Airline Delays
Profitability
Objectives
Measurement
 Customer Satisfaction  Feedback
 Employees & Company
Culture
 Generate Profits
 Increase in Flights
8 Flights Daily
Target
 Use culture
to provide
customer
service
Initiative
 Employee
Incentives
 Fun “LUVing”
Attitude
 Flight
Revenues
 Landing &
Fuel Costs
 Increase % of  Low costs
ticket sales
strategies
 Reduce # of
flight delays

 #1 in prices
and flight
turnarounds
High Costs Structure
Customer
Stronger Commitment
Flights are on
time
Growth and
Development
Expansion
Service
to New
York
 Customer
Commitments
 On-Time Departures
 Service to NY
% of Delayed
Flights
 Amt. of
Returning
Customers
 More Flights
 Success of
 Service in larger city
serving
 Attract more customers
LaGuardia
 Bring
Southwest
experience to
New York
 Building
Relationships
 Customer
Loyalty
Programs
 Serve the New
York area