great way to understand the external factors which Southwest Airlines is dealing with. Firstly the demographical factor that influence strategies of Southwest Airlines. The aging population in the United States is a big issue. It is known that older people‚ does not prefer to travel by plane‚ not for the short or long-haul. They are still too conservative and rather take a bus‚ train or drive themselves to the places they want to be. Because Southwest Airlines is very customer orientated they are providing
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falling in price suddenly.China‚Taiwan‚Singapore and Vietnam were not influenced.Japan were not affected much but its economy had to experience some long-run difficulties. Although this crisis was called “East Asian” crisis because it began from East Asia‚ its effects were worldwide.It even affected some countries such as:Russia‚Brasil and America. 1.THAILAND: From 1985 to 1995‚annual economic growth rate is 9 %.From 1991 to 1996‚the deficit of Thailand balance trade was 35‚26 billion USD.In
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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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doubling of fuel prices during the GolfWar in 1991‚ and excess capacity in the industry.” (Southwest Airlines Case Study‚ page 467) Additionally‚ macroenvironmental forces such as the “economic environment and disparate income distribution” (Marketing Management‚ page 79) among Americans during the recession helped create opportunity for smaller airlines to enter the market as “low-fare‚ low-frill” (Southwest Airlines Case Study‚ page 467) carriers‚ thus
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Southwest Airlines Case Study 1. Southwest Airlines was successful for many reasons‚ including low airfare cost‚ “quick turns” ‚ and “spider web” system. But‚ probably most important was their Corporate Culture of putting their employees first and really taking care of them. Southwest believes by doing this makes their employees happy and in turn‚ they will take care of them….. and ultimately that means repeat business. 2. Southwest’s quick turns allowed for them to have twice the industry
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Japan’s attitude toward foreign domination changed drastically over the years. Since the early 1600s‚ during the reign of the Tokugawa dynasty‚ the shogun made every effort possible to enforce a rigid isolation policy. He closed all ports except for one to foreigners. Anyone who left the country or allowed foreigners in were sentenced to death. However‚ by the mid-1800s‚ Japan began to reconsider their seclusion from the rest of the world. In 1850‚ Commodore Matthew Perry arrived in Japan‚ accompanied
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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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typically created unconsciously‚ based on the values of the top management or the founders of an organization. Southwest Airlines expends a lot of energy in maintaining its workplace culture. Southwest is the only major airline in the U.S. that has been profitable in each of the last five years. It also has a good reputation as an employer. Herb Kelleher‚ Southwest’s CEO‚ indicated how Southwest maintained its culture: "Well‚ first of all‚ it starts with hiring. We are zealous about hiring. We are looking
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SWOT : AIR ASIA Strengths 1. low cost operation 2. target mass customers 3. efficiency workforce 4. Staffs have multi skill to do their job. 5. single type fleet to service the customer‚ it easies to maintenance. 6. lowest fare more than others. 7. Sell the ticket direct to the customer. Weakness 1. Limited service to the customer. 2. charge every things except the ticket 3. A lot of competitor. 4. Brand positioning lower than other brand. 5
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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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