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ID number:201346
Evaluation:
Published: 09.07.2003.
Language: English
Level: Secondary school
Literature: n/a
References: Not used
Extract

A real point of difference between Ryanair and Southwest is the prominence of the latter as an admired employer and the culture of commitment that this engenders. This, in turn, appears to result in excellent customer service and productivity and flexibility. All of these contribute to an exceptionally positive corporate reputation. As already referred to, Ryanair does not appear to enjoy these internal benefits and this is compounded by a great deal of outsourcing of services. These intangible contextual factors that typify Southwest can be crucial. This means that while it is possible to copy efficient and effective operational arrangements, perhaps in the longer term, it is the intangibles of a favourable cultural climate that create survival and prosperity, especially in the face of pressure and change.
In conclusion, we can see a great deal of similarity between Southwest and Ryanair. However, there are a number of discrepancies, where the two carriers diverge because of the different nature of their broader and industry environments (Chapter 3 in Exploring Corporate Strategy), but also because of the different purposes, philosophies and attitudes of its management (Chapter 5 in Exploring Corporate Strategy).

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