Wednesday, April 6, 2011

Southwest Airlines "Keep It Simple" Business Model

A&BS processes need to be high quality but no-frills - doing only the essential functions, and executing them very well. Southwest Airlines provides a useful object lesson of this principle.
Southwest Airlines' "Keep It Simple" Business Model
They don't fly everywhere
Sparse customer amenities
No seating class distinctions
Fewest customer options
No choices on type of aircraft
Simplest pricing structure
Bare-bones frequent flier program
No frills
Few pretenses
Peanuts, not meals
But...
Good schedules for destinations served
Fewest cancellations
Best on-time performance
Safest airline worldwide
Fastest gate turnaround
Employees appear to be happy
Simplest customer-interface
Highest customer ratings
Most consistently profitable
Lots of peanuts

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