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sound strategy and practical targets Business definition 25 GXC Southwest researched target customer segment needs and preferences Oth e rFre quent f l y e r poi ntsPr i ceSch edu l eC us tomer p ur ch ase c ri t er ia 020406080100%Perc ent of respon ses26 GXC Southwest focused on key metrics for the target population vs. petitors Sout hwe st I nd ust ryaverag e48 %28 %02040608010 0%P e rc e n t of c u s t ome rs :E xc ellen t v al u e f or t h e mo n e y Sout hwe st I nd ust ryaverag e75 %70 %02040608010 0%On t ime pe rfo rman c ePrice Schedule 27 GXC Southwest aligned its cost structure to support its positioning vs. petitors Sou t hw est Ind us try averag e7. 2162。9. 1162。0246810162。Cents per avai l abl e seat mi l e? One type aircraft ? Secondary airports ? Customer self service ? No frills, no meals service Cost Initiatives 28 GXC Southwest ignored traditional airline measures that petitors focused on Sou t hw est Ind us try average30 %58 %0204060 %Repeat purchase 29 GXC Southwest aligned its anization to implement successfully Culture “Be low cost and deliver excellent service” ? Selective hiring (2% acceptance) ? Peer recruiting to ensure fits ? Flexible job descriptions Pilots and attendants “do it all” ? Rigorous customer service training ? Decision making pushed to front lines ? Employee loyalty focus to increase experience (50% less turnover) ? Emphasis on Importance of people Employee recognition Having fun 30 GXC Key learnings from Dell and Southwest ? Define a clear mission and a clear core and stick to your core ? Translate your mission into measurable outes ? Build a value proposition based on a fact based diagnosis Customers Competitors Costs ? Align the anization to implement your strategy 3