Value Chain Analysis of Southwest Airlines

Southwest Airlines is a low-cost carrier American airline company. The aviation brand has a fleet size of approximately 810 aircraft and offers 121 destinations in various countries worldwide. The airline brand started its business in 1967. Today, we’ll discuss the value chain analysis of Southwest Airlines supply chain analysis; primary and supporting activities in the process of value chain analysis Example Company. They are inbound and outbound logistics, operations, marketing, and customer service; infrastructure, HRM, technology, and procurement as an application of the value chain analysis process.

Suppliers and vendors of Southwest Airlines

• Boeing
• Airbus
• Tech devices and service providers
• Catering service providers
• Aircraft maintenance service providers
• Fuel suppliers

The Value chain analysis of Southwest Airlines supply chain analysis would analyze the primary and supporting activities in the process of value chain analysis. They’re inbound and outbound logistics, operations, marketing, and services; infrastructure, HRM, technology, and procurement. Here’s supply chain analysis of Southwest Airlines value chain analysis company example as follows;

Value Chain Analysis of Southwest Airlines

Let’s discuss the primary and supporting activities involved in the process of value chain analysis of Southwest Airlines supply chain analysis. It is an application of value chain analysis based on Porter’s model; some of the key elements and components of value chain analysis are as follows;

Primary Activities of Southwest Airlines

The primary activities are directly involved in the production of products and goods and adding value to the aviation company. Some of the five main primary activities in the value chain analysis of Southwest Airlines supply chain analysis are as follows;

Inbound Logistics of Southwest Airlines

I-Suppliers Diversity

Southwest Airlines has established a very large and diverse network of suppliers and vendors in various countries across the globe. The aviation brand prefers to collaborate and partner up with diverse suppliers and vendors. It allows the company to promote minority and small businesses that needs support; some of the qualified segments of the suppliers are as follows;

• LGBTQ
• Historically underutilized business zones
• Disability-owned business enterprises
• Small business enterprises
• Disabled veteran business enterprises
• Women business enterprises
• Minority business enterprises

II-Suppliers Code of Conduct

In order to regulate suppliers and ensure their ethical compliance, Southwest Airlines has developed a strict code of conduct for suppliers and vendors. It deals with the following areas;

• Anti-bribery and anti corruption regulations of the country
• Proper maintenance of the record
• Beware of the Hospitality, entertainment and gifting
• Fair competition
• Standard working hours
• Safe working conditions
• Respectful workplace
• Compliance with human rights standards

Outbound Logistics of Southwest Airlines

I-Aircraft Fleet & Destinations

Southwest Airlines has a very large fleet comprising over 817 aircraft and provides approximately 121 destinations. According to an estimate, the company is operating its business across the US and 10 countries worldwide. The large fleet size and destination network help the company to offer a quality air travel service to the customers.

Operations of Southwest Airlines

I-Flight Scheduling

According to an estimate, approximately 4000 passengers receive the air travel service from Southwest Airlines during the peak season. The aviation brand engages in multiple operations to ensure the smooth departure of passengers and customers to the required destinations. They’re like ticket distribution from various channels, seat management, sharing of information, flight scheduling, and allocating of cabin crew staff, pilots, and other staff and workers.

II-Maintenance

The large fleet size of approximately 810 aircraft is traveling and moving on various routes and destinations across the world. Their engines and machinery need regular repair and maintenance services to keep running smoothly without any disruptions. However, it allows the company to avoid any type of incidents and accidents.

Marketing & Sales of Southwest Airlines

Southwest Airlines runs various types of marketing and advertisement campaigns for the promotion of its aircraft service and brand. The company employs various media channels to approach the targeted customers and amplify its market reach. However, some of the popular advertisement campaigns and slogans of the company are as follows;

• Grab your bag
• The low-fare airline
• Welcome Aboard
• Low fares, nothing to hide, that’s transparency
• Just plane smart

Services of Southwest Airlines

Southwest Airlines offers a wide range of services to the customers; the additional services help the airline company to improve the customer satisfaction level and promote brand loyalty. They’re as follows;

• Rapid rewards
• In-flight entertainment
• Loyalty programs
• Low fares
• Excellent customer service
• Easy flight booking and scheduling

Supporting Activities of Southwest Airlines

Supporting activities are indirectly involved in the production of products and goods and adding value to the airline company. Some of the main supporting activities in the value chain analysis of Southwest Airlines supply chain analysis are as follows;

Infrastructure of Southwest Airlines

Southwest Airlines has established a very large infrastructure of fleet size, destination routes, suppliers and partners network, repair and maintenance staff, and a well-integrated system. Well-developed infrastructure helps the company to smoothly perform its various airline operations and timely deliver air travel service to the customers without any disruptions.

HRM of Southwest Airlines

Southwest Airlines has employed approximately 75000 employees to manage its global operations. The human resource management department of the company plays a key role in building a large database of employees, conducting training programs, allocating the staff in multiple shifts, and carefully screening all the employees and workers to avoid any type of mishaps.

Technological Development of Southwest Airlines

Southwest Airlines invested a significant amount of capital resources in technological development. It allows the company to upgrade its fleet size and aircraft, online integrated system, and efficiently perform its various operations. As a result, it helps the company to improve the customer satisfaction level by providing a seamless experience.

Procurement of Southwest Airlines

Southwest Airlines is highly careful and cautious about ethical sourcing and procurement of materials, supplies, and components from various suppliers, vendors, and partners. The company has set up a strict code of conduct for suppliers to ensure their compliance with human rights standards and regulatory requirements.

Conclusion: Southwest Airlines Value Chain Analysis Example Company | Application of Value Chain Analysis Process |Process of Value Chain Analysis

After an in-depth study of the value chain analysis of Southwest Airlines; we have realized that Southwest Airlines is the world’s leading low-cost aviation company. If you are learning about the Southwest Airlines value chain analysis example company; then you should keep in mind the abovementioned primary and supporting activities. They’re inbound and outbound logistics; operations, marketing and sales, and services; infrastructure, procurement, HRM, and technological development as an application of the value chain analysis process.