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’