Southwest Airlines Executive Summary “The U.S. airline industry had lost money in 14 of the 28 years from 1980 through 2007‚ with combined annual losses exceeding combined annual profits by $15 billion. Yet in July 2008‚ Southwest reported record quarterly revenues‚ its 69th consecutive quarter of profitability‚ rising passenger traffic on its flights‚ and a record load factor.”5 With a brilliant strategy of ‘low cost/low fare/no frills’ Rollin King‚ along with Herb Kelleher‚ launched the
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Southwest Airlines Business Operations Southwest Airlines continues growth during challenging times with no its low price‚ no frills and good customer satisfaction‚ setting themselves apart from the competition. Organizational change is part of the culture that successfully allows Southwest Airlines to set itself apart. The airline industry is subject to external forces such as fuel prices‚ labor costs‚ passenger economic status‚ and public perception. Southwest Airlines has developed a successful
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Discuss the corporate culture at Southwest Airlines and how it leverages its culture to achieve a competitive advantage. The corporate culture at Southwest Airlines can be defined within three areas including‚ core value‚ management style‚ and compensation. Southwest Airlines organization structure incorporated several areas but I was impressed with these three the most. Southwest Airlines had two core values‚ which emphasized on LUV and fun. Not only was LUV the company’s signature symbol
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MARKETING SPOTLIGHT- SOUTHWEST AIRLINES Southwest Airlines entered the airline industry in 1971 with little money‚ but lots of personality. Marketing itself as the LUV airline‚ the company featured a bright red heart as its first logo. In the 1970s‚ flight attendants in red-orange hot pants served Love Bites (peanuts) and Love Potions (drinks). With little money for advertising in the early days‚ Southwest relied on its outrageous antics to generate word-of-mouth advertising. Later ads showcased
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2.3 – DQ: Southwest Airlines History Commercial aviation has developed a reputation over the years of numerous flight delays‚ overbooked flights‚ and bad customer service while statistically maintaining a reputation for being one of the safest modes of transportation in the world today. Throughout the years airlines have come and gone by becoming newly formed start ups in the industry and becoming successful powerhouses in the industry or going through mergers‚ acquisitions‚ and even bankruptcy.
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As of Year 2004‚ the American Airline industry stood at around 783 Million USD/year in terms of operating revenue with American Airlines‚ United and Delta being the biggest players. Southwest was the 6th largest player in the market. Since 2001‚ the airline industry on the whole has been suffering he losses annually. The seat-miles flown have increased manifold over the long term (from 1989 to 2004) indicating increase in adoption of air travel among the population while the revenue per mile has
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BUS 330 Writing Assignment The paper is about how the airline company named as the Southwest Airlines has been able to cater to the needs of the customers while still holding a greater market share in the Airline industry specifically during the economic crises phase. Q1: As a high – contact service provider‚ how does Southwest Airlines ensure that its employees satisfy the customer? As far as the employee training is concerned‚ the employees are extensively trained so as such
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BibliographyKernin‚ Roger A. and Peterson‚ Robert A. Strategic Marketing Problems: Cases and Comments. 11th Edition. Southwest AirlinesSouthwest Airlines employees came together in late January 1995 for their weekly Tuesday meeting. A main topic of discussion was the competitions between Southwest airlines and "Continental Lite" and "Shuttle By United". As they were beginning the meeting a staff member advised the team of two changes "Shuttle By United" made to its service and pricing. First was
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Case Study 1 – Southwest Airlines 1. To what do you attribute the success of Southwest Airlines? The success of Southwest Airlines was mainly attributed to their innovative high-volume‚ low-margin business model‚ which included cutting flight prices dramatically‚ using their fleet at maximum capacity‚ and entertaining marketing gimmicks. Southwest’s flight structure took advantage of low-density airports and underserved areas and was comprised of a two-tiered pricing structure that books
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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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