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Southwest & Trader Joe's are very similar businesses.
1/ Focus on throughput
2/ Pay employees well
3/ Own the product
4/ Operating innovation
5/ Friendly persona
expanded:
1/ Focus on throughput
2/ Pay employees well
3/ Own the product
4/ Operating innovation
5/ Friendly persona
expanded:
1/ Focus on throughput
Southwest's avg turn time is 42 minutes, an industry best. It was as low as 10 minutes when just starting out. They don't assign seats to speed boarding up. 1 class. Etc.
TJ's has lowest time-on-shelf in industry, drive throughput with low margins
Southwest's avg turn time is 42 minutes, an industry best. It was as low as 10 minutes when just starting out. They don't assign seats to speed boarding up. 1 class. Etc.
TJ's has lowest time-on-shelf in industry, drive throughput with low margins
2/ Pay employees well
Southwest- highest employee satisfaction in industry, employee stock plan, Gary Kelly has 95% approval, stewardess' sing songs
TJ's- up to $16/hour for hourlies, up to $140k/year for managers, lowest staff turnover in industry (4%!), happy employees
Southwest- highest employee satisfaction in industry, employee stock plan, Gary Kelly has 95% approval, stewardess' sing songs
TJ's- up to $16/hour for hourlies, up to $140k/year for managers, lowest staff turnover in industry (4%!), happy employees
3/ Own the product
Southwest- only major domestic airline that owns/operates all their planes and routes, no SkyWest contracting, not even airline partnerships
TJ's- 75% of products are private label, no national brands
Southwest- only major domestic airline that owns/operates all their planes and routes, no SkyWest contracting, not even airline partnerships
TJ's- 75% of products are private label, no national brands
4/ Operating innovation
Southwest- only fly the 737, nearly all mechanics/pilots trained on entire flight, avoid hubs, maximize nonstops, focus on turn times
TJ's- highest $/s.f. in industry, 1/5 as many SKU's as competitors, standard operating plans, focus on shelf turn
Southwest- only fly the 737, nearly all mechanics/pilots trained on entire flight, avoid hubs, maximize nonstops, focus on turn times
TJ's- highest $/s.f. in industry, 1/5 as many SKU's as competitors, standard operating plans, focus on shelf turn
5/ Friendly persona
Southwest- "Bags fly free!" "Feel the LUV."
TJ's- All the products have cute little names, labels are "hand-written", drawings of local monuments in the stores
Southwest- "Bags fly free!" "Feel the LUV."
TJ's- All the products have cute little names, labels are "hand-written", drawings of local monuments in the stores
