Southwest Airlines: Order Qualifier and Order Winner

This assignment highlights the factors that affect the quality of products in Southwest Airlines. It discusses the concepts of order qualifier and order winner and their importance in the company's operations strategy.

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Operation Management

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Executive summary
The main aim of this assignment is to highlight the factors that affect the quality of the products.
A Southwest airline has been chosen for this report in order to bring attention to “order qualifier”
and “order winner”. The company has an effective operations strategy and the main focus of the
company is on the constant innovation. The order winner and order qualifier have been
elaborated under this assignment by taking consideration of southwest airline.

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Contents
Executive summary.........................................................................................................................2
Introduction......................................................................................................................................4
Literature review..............................................................................................................................4
Conclusion.......................................................................................................................................7
References........................................................................................................................................9

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Introduction
The quick technology advancement contributes to a volatile market, since technology impacts
the demand the human capital in various business areas. Subsequently, new business areas are
developing, which develops extent of human capital in one area of business and shortage in
another. The main aim of this assignment is to focus on the “order qualifier” and “order winner”
in order to highlight the advantages of them in the context of the companies. The literature
review will elaborate on the importance of both concepts by taking consideration of Southwest
Airlines.
Background of the company
Southwest Airline is a well known company in the aviation industry that was introduced in 1967.
The company has expanded its business all over world and serves 59 airports with taking range
of 381 planes in operation and the expansion of the company is still in progress (Southwest,
2018). The main aim of this company is to satisfy the customer and give chance to everyone to
fly high. The company seems intentional to contemplate on markets that other airlines do not
regard as vital. It has been found that in the starting of four years of its existence, the company
was airline by name only as the competitors of Southwest wanted to kill it at birth. The company
faced number of confronts to get developed within the industry. the company had adopted an
effective strategy and took action after great discussion in which instead of fighting with
wealthier and strong rivals, the company had decided to adopt the strategy of guerrilla war which
refers be there where enemy is unable to approach (Airlines and Roadway, 2014).

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Literature review
According to Caniato, Caridi, Castelli and Golini, (2011), when a company determines whether
to purchase a service from one company or another, the decision process can be distinguished
into two parts. It is the process that initiates with an evaluation of the offers that are ready to
qualify into the buying process, that refer as order qualifiers. Secondly, there are specific offers
proceed to the final stage where the option of one order shows, the order winner. The main aim
of both concepts is to understand and identify the needs and wants of the customer. According to
Leuschner, Rogers and Charvet, (2013), at the time of developing the operation strategy, it is
crucial for the company to pay attention towards on both concepts. Moreover, it is integral for
the company to separate order qualifier from order winner for the aim of improving the
knowledge and the understanding of the market. The role of qualifiers and winners have
significant value in the company, if the company is unable to qualify, the company cannot win
the order. Hence, it represents that existing criteria is vital when a company wants to attain a
huge market share and develop. It has been found that order qualifiers and winners are dependent
on the market. Thus, it is necessary to bear in mind that the company should not dependent on
the general rules as the order winners and order qualifiers rely on the situational context.
Moreover, the significance of criteria amendments over time as the sources of order qualifiers
and order winners criteria should be recognized and it is integral to include the customer in the
criteria of the process. Lee, Hu, Yen and Tsai, (2008), stated that the focus of the company on
the order qualifier can turn into order winning process.

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Figure: value drivers
Source: (Jaller and Ullstrom, 2008).
With respect to the definition of order qualifiers, Lyles, Flynn and Frohlich, (2008), stated that
order qualifier comes under those criteria that the company should comply with to be measured
as a potential supplier. The good performance over this criteria can lead the company into
success zone, however, it is not easy to win the orders and increasing the entrance limit for such
aspects affects nothing or very little in the final decision of the company. in the context of the
definition of order winners, it has been found that the criteria of order winner are those that
comprise the company differentiation in contrast to the competitions that permit suppliers to
carry them to win the orders (Tierney and Kuby, 2008). The role of both concepts keeps huge
importance in the development of the company. Hence, suppliers should guarantee to fulfill the
range of the qualifying criteria for the purpose of staying in the competitive market. Both
concepts are value drivers for the business to get success in the relative industry.
With respect to the case study of Southwest Airline, it has been found that the company has an
effective strategy to run its operation in a competitive environment. In comparison to many of its
competitors, it has been found that the company offers a distinctly no-frill service. The main
focus of the company is on making an effective strategy. It has been analyzed that there are

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targeted airports by the company where routes overlooked or badly handled by other airlines. It
shows that the availability factor is effective for the company by which the company can grab
huge opportunity to reach peak. The order qualifier and order winner in the context of the
company are mentioned below:
Order Winner: Cost and Quality
The cost is the major order winner of the southwest airline which cannot be beaten by another
competitor of the company. The function of the company is framed by taking consideration of
the order winner as the company applied many strategies that refer to cost-cutting strategy. it has
been found that the facilities of the company are streamlined in which the routes of this airline
are shorter in comparison of other airlines and one kind of aircraft is taken into consideration by
the company (Prajogo and McDermott, 2011). It represents the approach of the company towards
cost-cutting. The main motive of the company is to do more for less in which the company does
work hard in comparison of their competitors. Planes turn around earlier and the staffs of the
operation are fewer. It has been found from the case study that by not using travel agents which
helps the company to reduce the cost in the form of the agent’s commissions. A southwest airline
has approached number of strategies to reduce the cost and become famous in airline industry as
no airline can beat cost-cutting strategy as Southwest airline does.
On the other hand, quality is another factor of order winner in the context of the southwest
airline. It has been found that the quality conformance is considered as an integral competitive
criterion of order winner concept. Due to manufacturing techniques of Japan, the quality level is
referred by each company to attain competitive advantages. It is vital for the suppliers to be
aware of what dimensions the customer involves in the criterion of quality. Southwest airline has

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been able to evaluate this criterion in which the main focus of the company is to focus on cost
cutting along with quality factors so that the company can reach up to maximum number of
employees (Kathuria, Porth, Kathuria and Kohli, 2010). In case of finding the gap between the
current performance of the supplier and the customer’s need, it is required by the supplier to
amend the performance so that the demand of the customer can be fulfilled. It has been found
from case study that the leader of the company (Kelleher) has faith in leading by illustration
instead of focusing on direction. The company maintains thee closer relationship with customer
that be the cause of customer loyalty frequent flyers know ground staff, cabin crew which makes
good relationship with the company for a long period.
Order Qualifier- Availability
Order qualifier is the factor that refers to the competitive priorities that should be fulfilled by the
company to qualify as a competitor in the marketplace. Availability cones under in those
competing priorities that comes up to expectations of order qualifier. The company has
approached a plenty of factors to remain in the competitive environment for which the company
has approached those place which is out of think of other competitors. This kind of different
thinking might lead the company at peak (Lockett, Johnson, Evans and Bastl, 2011). The system
of operation management has turned into new an effective strategy for which speed and
flexibilities are two key components for the company. By operating a turn-up policy, the
company is able to provide services at lower rate to the customer and increase availability.
Southwest opted ground that has mid-sized airports in cities such as Los Vegas, Sacramento,
Little Rock and Phoenix.
Process of improvement

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In the context of process of improvement and development of order winner and order qualifiers,
it has been found that the company has adopted a number of approaches such as low cost
position strategy, quality services and availability factors. It shows that the company should
focus on continuing streamlining and automation by which the company can cut cost and attain
competitive advantages (Huo, 2012). The company can implement services in such areas where
its competitors exist, the company should not cover all areas but it should cover at least that area
where passengers face issues due to lack of availability of planes. However, cost and quality is
the order winner for the company and the approach and the strategies of the company towards
availability would be helpful in catches up other’s order qualifier. It has been found that the trust
of the customer has a significant impact over the performance of the company that is why it is
vital for the company to be on words and make visualize what is real so that the trust of the
customers can remain same for the company (Ramasamy and Yeung, 2010).
Potential implications
It has been found that supply chain integration is the major factor in the hard economic situation.
It has been implied to the company to keep focus on the different kinds of supply chain as one
kind of supply chain factor influence another factor. The lean supply chain and agile supply
chain are two major concepts of supply chain which are applied to Southwest Airlines. The
company should focus on supply chain as per the main motive of the company towards attaining
competitive advantages (Zorzini, Corti and Pozzetti, 2008). It is necessary for the company to
improve the customer service to focus on both agile and lean supply chain as the main motive of
the company is on cost cutting and quality of the products. Lean supply chain has focused on
developing high volume at low cost. It shows the company should include other facilities like
competitors such as food, online ticketing but on lower cost in comparison of other airlines. On

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the other hand, in the context of agile supply chain, it has been found that it focuses on the
flexibility and receptiveness. It has been found that “customer centric” supply chain has an
effective influence on Southwest in order to answering to number of needs of different kinds of
customers in an effective manner.
Conclusion
It has been concluded that the order winner and order qualifiers have significant impact on the
performance of the company. The discussion has been made by taking consideration of both
aspects in which definition of order quality and order qualifier have been elaborated. The
literature review section has entailed the discussion on both aspects and the process for
improvement in order winner by Southwest in order to attract number of customers towards the
services. Potential implications have been made in the context of the southwest airlines so that
the performance of the company could not get affected due to any potential issues. Along with
that the supply chain of the company has been mentioned under this assignment in the context of
the chosen company.

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References
Airlines, S. and Roadway, U.L., 2014. Southwest Airlines. Facebook. com.
Caniato, F., Caridi, M., Castelli, C. and Golini, R., 2011. Supply chain management in the luxury
industry: a first classification of companies and their strategies. International Journal of
Production Economics, 133(2), pp.622-633.
Huo, B., 2012. The impact of supply chain integration on company performance: an
organizational capability perspective. Supply Chain Management: An International
Journal, 17(6), pp.596-610.
Jaller, A. and Ullstrom, P. 2008. Identification of order winner and order qualifier characteristics:
case studies on the home appliance market. Available [online] Accessed on: 19th December
2018.
Kathuria, R., Porth, S.J., Kathuria, N.N. and Kohli, T.K., 2010. Competitive priorities and
strategic consensus in emerging economies: evidence from India. International Journal of
Operations & Production Management, 30(8), pp.879-896.
Lee, Y.C., Hu, H.Y., Yen, T.M. and Tsai, C.H., 2008. Kano’s model and decision making trial
and evaluation laboratory applied to order-winners and qualifiers improvement: a study of
computer industry. Information Technology Journal, 7(5), pp.702-714.
Leuschner, R., Rogers, D.S. and Charvet, F.F., 2013. A meta‐analysis of supply chain integration
and firm performance. Journal of Supply Chain Management, 49(2), pp.34-57.

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Lockett, H., Johnson, M., Evans, S. and Bastl, M., 2011. Product Service Systems and supply
network relationships: an exploratory case study. Journal of Manufacturing Technology
Management, 22(3), pp.293-313.
Lyles, M.A., Flynn, B.B. and Frohlich, M.T., 2008. All supply chains don't flow through:
Understanding supply chain issues in product recalls. Management and Organization
Review, 4(2), pp.167-182.
Prajogo, D.I. and McDermott, P., 2011. Examining competitive priorities and competitive
advantage in service organisations using Importance-Performance Analysis matrix. Managing
Service Quality: An International Journal, 21(5), pp.465-483.
Ramasamy, B. and Yeung, M., 2010. The determinants of foreign direct investment in
services. World Economy, 33(4), pp.573-596.
Southwest, 2018. About us. Available [online] Accessed on: 19th December 2018.
Tierney, S. and Kuby, M., 2008. Airline and airport choice by passengers in multi-airport
regions: the effect of Southwest Airlines. The Professional Geographer, 60(1), pp.15-32.
Zorzini, M., Corti, D. and Pozzetti, A., 2008. Due date (DD) quotation and capacity planning in
make-to-order companies: Results from an empirical analysis. International Journal of
Production Economics, 112(2), pp.919-933.