While the major airlines in the United Stated were making a lost of approximately $8 billion‚ Southwest was the only airline company that was profitable as well as facing a rapid grow-with a 25 percent sales increase in 1992. In 2005‚ Southwest was the sixth largest airline in United Stated. The success of Southwest is mainly linked to its pricing strategy‚ it positioned itself as a low-price‚ short hauls and bare bones operation. There are numerous distinctive characteristics that had lead to
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uth-West AirlineA07-05-0006 Southwest Airlines 2005 You are now free to move about the country.™ In 2005‚ Southwest Airlines (Southwest)‚ the once-scrappy underdog in the U.S. airline industry‚ carried more domestic passengers than any other U.S. airline. The company‚ unlike all of its major competitors‚ had been consistently profitable for decades and had weathered recessions‚ energy crises‚ and the September 11 terrorist attacks. In recent years‚ Southwest had become more aggressive with its
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SOUTHWEST AIRLINE ANALYSIS Contents SOUTHWEST AIRLINE CASE STUDY 4 INTRODUCTION 4 PART 1: EXTERNAL ANALYSIS 5 OVERVIEW 5 MACRO-ENVIRONMENTAL ANALYSIS 6 PESTEL Analysis 6 Industry Analysis 9 Five Forces Model Pictorial Representation 9 Five Forces Analysis 10 PART 2: INTERNAL ANALYSIS 13 OVERVIEW 13 SWOT ANALYSIS 14 Strengths 14 Weaknesses 15 Opportunities 15 Threats 16 The VRIO Framework 16 FINANCIAL
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Case 1: Southwest Airlines 1. What is SWA’s strategy? What does it take to execute the strategy? Southwest’s strategy is to maintain low cost‚ low fares and frequent flights. SWA execute this strategy through emphasizes point to point routes‚ which means customers fly directly to their final destination. According to annual report of 1993‚ 80 percent of its customers fly non-stop to their final destination. Furthermore‚ SWA also pays off in shorter turnaround times and higher equipment. Therefore
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Southwest Airlines Case Study Manohar Gadiraju Overview Southwest Airlines has been a cost leader in the airline industry with continuous growth and profits for the past 35 years. It has been the fourth largest domestic carrier with low priced routes and a no frills policy - free of in-flight meals and baggage transfers. The low cost fares‚ almost comparable to automobile transportation costs‚ have created both an unprecedented growth and new markets for this airline. Southwest was
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Company New York USA Johnson‚ G; Scholes‚ K; Whittingham‚ R (2008) Exploring Corporate Strategy Eighth Edition Lynch‚ R (2009) Strategic Management fifth edition. Pearson Education Limited Harlow England McGee‚ J; Thomas‚ H; Wilson‚ D (2005) Strategy- analysis and practice: McGraw-Hill Education Maidenhead England Porter‚ M.E (2004) Competitive Advantage – Creating and Sustaining Superior Advantage. The Free Press New York USA. Porter‚ M.E (1980) Competitive Strategy – techniques for analysing industries
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Background THE NORTH-SOUTH AIRLINE Northern airlines merged Southeast Airlines to create the fourth largest U.S. carrier in which it inherited both an aging fleet of Boeing 737-300 aircraft and Stephen Ruth. As the new president of the airline‚ Stephen’s first concern is to create a financially solid company since it is a common presumption for airline industries that maintenance costs rise with the age of aircrafts. He noticed that there have been significant differences in the reported B727-300
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A CASE ANALYSIS ON NORTH-SOUTH AIRLINE I. CASE BACKGROUND Northern Airlines merged with Southeast Airlines to create the fourth largest U.S. carrier in which it inherited both an aging fleet of Boeing 727-300 aircraft and Stephen Ruth. As the new president of the airline‚ Stephen’s first concern is to create a financially solid company since it is a common presumption for airline industries that maintenance costs rise with the age of aircrafts. He noticed that there have been significant differences
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Stakeholders are all those who need to be considered in achieving project goals and whose participation and support are crucial to its success. Stakeholder analysis identifies all primary and secondary stakeholders who have a vested interest in the issues with which the project or policy is concerned. This information is used to assess how the interests of those stakeholders should be addressed in a project plan‚ policy‚ program‚ or other action. The goal of a stakeholder is to develop a strategic
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Snowbirds of the south-west Anybody who drives in Arizona at this time of year will be familiar with the annual migration of “snowbirds”—retired people‚ that is‚ seeking to escape the sub-zero temperatures of the north for the balmy desert winter. As many as 300‚000 snowbirds flock here each year‚ so if you haven’t seen one before‚ there’s a good chance that your first encounter with this exotic creature will occur when you find yourself stuck behind a Jayco caravan with Nebraska licence plates
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