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Organizational Capabilities to “Conipetitive Advantage Roger Hallowe man Ressuce Management Introduetion Southwest Arties hae demonstrated its superior comprehensive sisatgy by (1) being the only ‘major United States (US) aitine 19 earn a pro throughout the early 1990, (2) having one othe ‘most successful airline stocks, and (3) being the only airline to ever win the industry's "tiple xonn” (measures of customer satisfaction)” Asan ‘crample of Southwexts succes, both Continent nd United Aitines have copied aspects of is strat ay in thee efforts to improve proftabiliy Souihmest’s success may be due largely tits ‘unusual focus on creating value for employees LUV" and “FUN,” the cornerstones of Southwest's ‘employeeselations approach, represent concern and respect forthe individual, ae well the com ‘cious creation of an environment that encourages ail employees to have fun on the job. Southwest's low turnover and high productivity sugges thot ‘he aline creates sgteane value for employees Southwest's succes is alo dependent on is ‘otyanizational capabilities that enable it wo convert some ofthe value created for employces to cus ‘omer and shareholder value. Asa rest of these apsbitis, employees deliver both low cost and ‘superior service which form the bai of Southwest’

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