Executive Summary As Southwest continues expanding‚ it is important that they maintain the low cost structure that has made them so successful historically. As larger and more congested destinations are added to Southwest’s routes‚ they must focus on customer service as the on-time arrivals and other metrics are certain to deteriorate. Additionally‚ in order to protect from volatile fuel prices‚ it would be prudent to expand the fuel-efficiency of the fleet by capitalizing on Boeing’s most
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Southwest Airlines Strategic Practices Marion L. Boston MGT 450 Strategic Planning for Organizations Instructor: Mark Bojeun April 4‚ 2011 Introduction Southwest Airlines’ company strategy consists of competitive moves and business approaches management has developed to attract and please customers‚ conduct operations‚ grow the business‚ and achieve performance objectives (J. Gamble & A. Thompson. 2009. p. 2). In writing to inform the management team of the discussion‚ we will discuss
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Southwest Airlines: 1993 (A) - Just Plane Smart -SummaryIntroduction: During the summer of 1003‚ the company was about to receive two uncommitted airplanes. The director of schedule planning needed to find a way to put these machines to work and meeting growth objectives without damaging the company’s focus. The main decision should be compliant with the Southwest Airlines’ organizational culture. History: Southwest started in 1971‚ after going through court battles caused by competitors that
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Southwest Airlines Fuel Hedging and Relations to Profitability Abstract In order to stay airborne‚ a passenger airline has to consistently generate profits. Profits come only from paying passengers‚ hence all stratagems must be customer oriented. In a scenario where there are many airlines competing with each other‚ one way of attracting passengers is to keep the cost of flying low‚ while providing value for money. On the other hand‚ expenses must tightly controlled to reach and stay at the
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Strategy and Policy Case 2. Southwest Airlines. I- Strategic Profile and Case Analysis Purpose Southwest airlines were founded in 1971 by King and Herb Kellerher. They started with a low cost strategy in a risky market where profitability depends a lot on fuel prices and external factors‚ such as the willingness of consumers to pay ticket prices. They started growing a lot with various strategies that permitted them beat a lot of their competitors‚ but in order to stay in the market they
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Southwest Airlines corporate philosophy can be credited to one of the founders Herb Kelleher. It is an airline company with a unique culture “goofiness”‚ which keeps the morale of its employees high (Smith‚ 2004)‚ and is a company that welcomes fun‚ dedication‚ and effort. Southwest believes that a happy employee will create a happy customer‚ and will create loyal customers. Mr. Kelleher effectively implemented its style‚ culture and emphasis on quality in the daily actives at Southwest (Smith
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Case study: Southwest Airlines 1. Southwest Airlines has been a highly successful undertaking. This is due in part to the marketing objectives it has set for itself. Its main objective was to create brand awareness/preference‚ customer value and be a market share leader. The next step was to come up with a marketing mix strategy of price‚ place‚ product and promotion to achieve its objective. Southwest cut out many amenities in order to differentiate itself from its competitors. Its main objectives
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As with any company‚ Southwest Airlines has risks that have to deal with. For starters‚ co-founder and visionary leader Kelleher will soon be less involved in the firm ’s operations. Mr. Kelleher is responsible for the decision making of Southwest Airlines so it is going to be interesting to say the least when he takes a lesser role in the daily business of Southwest. Perhaps a more important risk‚ though‚ is the simple fact that Southwest is an airline. Past financial indicators have shown that
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Executive Summary The strategy of Southwest Airlines (SWA) has remained the same‚ which is to give customers low-cost‚ point-to-point airfare‚ with excellent customer service. This simple strategy has resulted in SWA posting profits for 30 consecutive years. While other airlines are downsizing‚ SWA is showing slow steady growth. This performance is evident throughout their SEC Filings. First we will look at SWA’s ROI and ROE compared to the rest of the industry. Two thousand and one and 2002 were
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Southwest Airlines Co. – 2007 Case Analysis On the brink of airlines’ market share battlefield‚ many of the companies failed to launch new strategies and price controls because of fuel prices‚ market requirements and safety issues. Along with the history of low price policy that Southwest Airlines started to implement decades ago‚ the recent challenges and soaring competitive behaviors made that company pass huge obstacles. Southwest Airlines manifested the new growth in Texas air carrier businesses
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