Southwest Airlines is the industry leader in low cost airfare. They began its operation in 1971 with three Texas based routes and began interstate routes in 1978. When Southwest entered the market in 1971 they employed a market penetration pricing approach. They wanted to provide the best service for the lowest possible price. They saw that if they cut out certain unnecessary benefits they could lower their ticket price to a level far below that of the competition. They do not have in flight
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SOUTHWEST AIRLINES CASE STUDY ASSIGNMENT – SUGGESTED STRUCTURE Cover page Contents page MAIN BODY INTRODUCTION (150 WORDS) Purpose of the report What does Southwest Airlines do? What is the background to the organisation? What industry does it operate in? What are its geographical markets? What products and services does it offer and what are the market segments? What are Southwest Airlines’ mission‚ vision and values? What generic strategy
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EXECUTIVE SUMMARY 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
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Executive Summary Industry analysis The airline industry is at the growth stage. The economic and technologic development are the main factors for airline industry growth. Also‚ the demand of customers drives the market growth. Economy globalization also has an impact on airline industry. The competitive rivalry within the industry is high. Southwest’s chief rivals are American Airlines‚ Delta Air Lines‚ United Airlines and US airway. Overall‚ the airline industry develops well. Strategic issues
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Southwest Airlines Southwest Airlines is one of the most successful airlines in the United States. There has never been layoffs or strikes in the history of the company‚ although there were several times when layoffs could have been justified‚ including the months following the September 11‚ 2001 terrorist attacks. However‚ Southwest’s Mission statement says “Above all‚ Employees will be provided the same concern‚ respect‚ and caring attitude within the organization that they are expected to share
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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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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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Constraint Management at Southwest Airlines Introduction I think everyone here may has the experience that the plane can not take off on time. The long waiting time make everyone feel anxious. And at this time‚ this airline company’s customer satisfaction will become lower. Therefore‚ There are a lot of constraints in the process of operating the airline. How to manage these constraints and generate positive customer experiences are vitally important to the airline company. Southwest is a company that
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October 4‚ 2013 Southwest Airlines Every business has a CEO who deals with the everyday lifestyle of being the boss. Have you ever wondered how many people who work as the CEO of a company because it was always something they wanted to do? For those of you who said yes‚ think again. The CEO of Southwest Airlines‚ Gary Kelly‚ never had aspirations of being a CEO to a company as large as Southwest Airlines. There are a few founding principles: keep costs down through fast turn-around time at
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What are the sources of Southwest Airlines’ competitive advantages? There were three keystones to Southwest Airlines’ competitive advantage. The first lied in its employees and how they were managed. Secondly‚ the firm sought to identify major threats and opportunities in their competitors‚ and assess how Southwest could improve and capitalize on markets where their competition failed. And the final significant success factor was the company’s cost structure. Former CEO‚ Herb Kelleher‚ was
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