1. Using scenario planning‚ analyze the pros and cons of each alternative. Alternative of low cost Pros * New traffic for budget conscious customers * More sales volume Cons * More needed space to hold product * Less product available because selling product faster * More labor required for replenishment of inventory and store front * More disgruntled employees from sheer volume of customers * High employee turnover from stress Alternative of differentiation Pros
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CASE REPORT #7	 GROUP 10 (按姓氏首字母排序) 黄昕 靳子仪 刘静 刘天娇 王小茜 2011/5/3 CASE REPORT #7： Southwest Airlines: Waging War in Philly Case Briefing： In May 2004‚ Southwest Airlines’ new line in Philadelphia began to operate‚ which triggered enormous commotion in the existing airline industry—especially US Airways. Southwest Airlines is famous for its low cost strategy‚ which goes against the industry’s conventional wisdom (See Form 1 below). Having persisted in its strategy‚ Southwest expended
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Case Analysis on the Article‚ ¡§Competitive Turbulence in the Airline Industry¡¨ (Segmentation‚ Targeting and Positioning) EXECUTIVE SUMMARY Airline industry has 4 sectors identified: Full-service‚ Budget‚ Limited-service‚ Premium-service Segmentation and Targeting: Psychographic‚ Behavioral‚ Geographic and Demographic Positioning: Value proposition matrix (more for more‚ less for less‚ etc.) Conclusion and Recommendations: « SIA in marginal value proposition
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Southwest Airlines provides short haul‚ high frequency‚ point-to-point‚ low-fare services to and from 58 cities across the United States. The company is known for its low-cost fares and superior customer service in the airline industry. The company was started in 1971 with a motto still lived by today‚ "If you get your passengers to their destinations when they want to get there‚ on time‚ at the lowest possible fares‚ and make darn sure they have a good time doing it‚ people will fly your airline." This
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Sociality and Economics Development IPEDR vol.10 (2011) © (2011) IACSIT Press‚ Singapore Competitive Pricing Strategies of Low Cost Airlines in the Perspective of Game theory Lim Seng Poh+ and Mohd. Ghazali bin Mohayidin Open University Malaysia Abstract. Price is the weapon of choice for many low cost airlines in the competition for market share. Regional low cost airlines’ pricing strategy for market stimulation is issuing free tickets and competing in ticket prices setting. It has been assumed
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At the onset of the airline industry in the United States‚ major network airlines were the sole providers of air travel. This multifaceted industry was a difficult industry to break into as a consequence of “sophisticated customer segmentation‚ hub-and spoke models and costly information systems for reservations‚ fare wars and intense competition” (Thompson 2008). Shrinkage in airline ticket prices augmented the demand for airline travel. Many markets were simply deserted or over-looked by major
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How to Become a McDonald’s Franchisee McDonald’s is the biggest fast-food chain in the world that it boasts more than 30‚000 restaurants in 119 countries. With this unrivaled popularity‚ entrepreneurs who will franchise on McDonald’s will most likely succeed in the business; meanwhile this is how to start McDonald’s franchising. For those who want to franchise from McDonald’s‚ they can visit its companywebsite to know about the opportunities available to them are. Meanwhile‚ the corporation allows
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Kelleher’s law office with a plan to start a low-cost/low-fare airline that would shuttle passengers between San Antonio‚ Dallas‚ and Houston. Thought of this idea because businessmen were complaining about the commute. 1967: Kelleher filed papers to incorporate the new airline and submitted an application to the Texas Aeronautics Commission for the new company to serve Dallas‚ Houston‚ and San Antonio. ------4 year legal and regulatory battle from rival airlines------ 1971 (January): Lamar Muse
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181–200 American Accounting Association DOI: 10.2308/iace.2011.26.1.181 A Case Study on Cost Estimation and Profitability Analysis at Continental Airlines Francisco J. Román ABSTRACT: This case exposes students to the application of regression analyses to be used as a tool pursuant to understanding cost behavior and forecasting future costs using publicly available data from Continental Airlines. Specifically‚ the case focuses on the harsh financial situation faced by Continental as a result of
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A Case Study on Cost Estimation and Profitability Analysis at Continental Airlines Francisco J. Román Introduction In 2008‚ the senior management team at Continental Airlines‚ commanded by Lawrence Kellner‚ the Chairman and Chief Executive Officer‚ convened a special meeting to discuss the firm’s latest quarterly financial results. A bleak situation lay before them. Continental had incurred an operating loss of $71 million dollars—its second consecutive quarterly earnings decline that year
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