Case Studies: Transporation
Norwegian Cruise Line
David P. Sibley T'13, M. Eric Johnson
Length: 20 pages
Publication date: 2013
After five years of profitable growth, Kevin Sheehan, CEO of Norwegian Cruise Line, rang the NASDAQ bell on Norwegian's first day of trading. Under Sheehan's leadership, Norwegian had experienced a dramatic turnaround, largely due to his efforts to help the organization deliver on the promise of Freestyle. Allowing guests the freedom to choose between many different dining and entertainment venues, Freestyle was an industry first and an immense operational challenge. When first introduced, the execution of the game-changing strategy failed with guests waiting in long-lines for poor quality food. A veteran of private equity turnarounds, Sheehan systematically integrated technology and process improvement to build an organization that could deliver Freestyle cruising. This case allows students to explore the challenges of aligning marketing and operations strategies and the competitive advantage that can be achieved through such integration.
Blair LaCorte T90 glanced out the window as his Virgin American flight approached San Francisco International Airport, and thought about the challenges facing XOJET and the private aviation industry as a whole. With demand up 50% YOY they needed every jet they owned. It was October, 2011, and LaCorte had been CEO of XOJET for two years, during which time his team had grappled with difficulties both short and long term that faced the private aviation industry. Their analysis had determined that the industry wasn’t just in a cyclical downturn, but faced structural challenges that would require XOJET to alter its strategy.
Enhancing Service at Southwest Airlines
M. Eric Johnson
Length: 14 pages
Publication date: 2009
Scarcely five years at the helm of Southwest Airlines, CEO Gary Kelly was navigating the high-flying airline through the downturn of 2009. By focusing on simplicity and keeping costs low, Southwest had posted profits in every year for over three decades and had grown to be the fifth largest U.S. carrier. Kelly was faced with maintaining those low costs while readying the airline for growth when passengers returned. Looking to enhance its value proposition, he was considering a number of service refinements including satellite- based WiFi Internet, more extensive wine and coffee service, and even new international alliances with foreign carriers. In each case, the offering would be scrutinized to see if it fit within the Southwest strategy and its legendary operating model.