Southwest Airlines 2010 Case Study
What strategies did Southwest Airlines developed earlier to gain market visibility?
Southwest Airlines employed many strategies over the years with their fist strategy being ads run in the media. Southwest airlines utilized a number of campaigns including skimpily clad flight hostesses, free in-flight alcoholic beverages and a “Love” campaign using the tag line “Now There’s Somebody Else Up There Who Loves You” in an effort to attract passengers. (Leavenworth) Southwest Airlines developed a ground crew turnaround plan that allowed them to add additional flights without the high expense of new plane purchases, even today their turnaround time is nearly half that of other commercial airlines. The idea of CEO Lamar Muse for system wide on-peak/off-peak pricing increased their passenger count and eventually became a standard across the airline industry. The company moved flights from an intercontinental airport where they were losing money to an abandoned airport with a closer vicinity to downtown destinations which doubled passenger traffic. In an attempt to fill empty seats, Southwest slashed its regularly priced fare in half, ran an ad against a competitor implying they were trying to run them out of business, and then offered complementary alcohol or ice buckets for those flying under the original fare price.
Discuss Southwest Airlines legal and regulatory hurdles. Did it hurt the airlines? If so, why or why not?
Southwest Airlines encountered their first hurdle right out of the gate through a four-year battle to incorporate the airline. They fought and won a battle with local officials over their refusal to relocate from the Dallas Love Field to the newly opened Dallas-Fort Worth (DFW) Regional Airport. (Thompson, Peteraf, Gamble, & Strickland, 2010) Southwest Airlines was victorious in a U.S. Government investigation against Braniff and Texas International for conspiracy to put Southwest Airlines out of business. Southwest Airlines was prohibited from
Southwest Airlines employed many strategies over the years with their fist strategy being ads run in the media. Southwest airlines utilized a number of campaigns including skimpily clad flight hostesses, free in-flight alcoholic beverages and a “Love” campaign using the tag line “Now There’s Somebody Else Up There Who Loves You” in an effort to attract passengers. (Leavenworth) Southwest Airlines developed a ground crew turnaround plan that allowed them to add additional flights without the high expense of new plane purchases, even today their turnaround time is nearly half that of other commercial airlines. The idea of CEO Lamar Muse for system wide on-peak/off-peak pricing increased their passenger count and eventually became a standard across the airline industry. The company moved flights from an intercontinental airport where they were losing money to an abandoned airport with a closer vicinity to downtown destinations which doubled passenger traffic. In an attempt to fill empty seats, Southwest slashed its regularly priced fare in half, ran an ad against a competitor implying they were trying to run them out of business, and then offered complementary alcohol or ice buckets for those flying under the original fare price.
Discuss Southwest Airlines legal and regulatory hurdles. Did it hurt the airlines? If so, why or why not?
Southwest Airlines encountered their first hurdle right out of the gate through a four-year battle to incorporate the airline. They fought and won a battle with local officials over their refusal to relocate from the Dallas Love Field to the newly opened Dallas-Fort Worth (DFW) Regional Airport. (Thompson, Peteraf, Gamble, & Strickland, 2010) Southwest Airlines was victorious in a U.S. Government investigation against Braniff and Texas International for conspiracy to put Southwest Airlines out of business. Southwest Airlines was prohibited from
Cited: Freiburg, K. &. (1996). Nuts! Southwest Airlines: Crazy Recipe for Business and Personal Success. Austin, Texas: Bard Press. Hardage, G. (2006). Profile: Communicating the Southwest Way. Strategic Communication Management. ABI/INFORM Global database. (Document ID: 1019255281). Leavenworth, S. (n.d.). Southwest Airlines Co. Retrieved July 23, 2012, from http://www.ive.cuny.edu/downloads/cases/Southwest%20Airlines%20IVE%20Case.pdf N.A. (n.d.). Southwest.com. Retrieved from Southwest.com: http://www/southwest.com Robbins, S. &. (2007). In S. &. Robbins, Management. Upper Saddle River, NJ: Prentice Hall. Thompson, A., Peteraf, M., Gamble, J., & Strickland, A. (2010). Crafting & Executing Strategy: the quest for competitive advantage. The McGraw-Hills Companies, Inc.