JR Background Southwest: of June 18‚ 1971: Headquartered at Love Field in Dallas‚ it began flying with three Boeing 737 serving following Texas cities: Dallas‚ Houston‚ and San Antonio 2002: Recognized by Fortune magazine as the most admired Airline Company and listed in “100 Best Corporate Citizen” by Business Ethics 2004: Total operating revenue of $6.5 billion and 31‚000 employees. Evaluation Problem: 1. What is Southwest’s Strategy? 2. What is the basis on which Southwest build its competitive
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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 and Continental Airlines: A Managerial Economic Perspective Introduction In order for companies to maximize profits and productivity‚ it is important that they implement managerial economics on both a day-to-day and strategic basis. This paper will compare and contrast Southwest and Continental Airlines from a managerial economic perspective. The goal of the paper is to critically analyze both companies on their use of managerial economic practices. The Airline industry is a capitally
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The mission of southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth‚ friendliness‚ individual pride and Company Spirit (Ruppel‚ 2012). The people of Southwest are the single greatest strength and most enduring long term competitive advantage (Kelly‚ 2012). Southwest Airlines started out as Air Southwest Co in 1967; serving only three local airport hubs in Texas. The hubs were San Antonio (SAT)‚ Dallas (DAL) and Houston International Airport
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The External Environment All outside factors that may affect an organization make up the external environment. The external environment is divided into two parts: ● ● Directly interactive: This environment has an immediate and firsthand impact upon the organization. A new competitor entering the market is an example. Indirectly interactive: This environment has a secondary and more distant effect upon the organization. New legislation taking effect may have a great impact. For example‚ complying
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Lesson: Date: Words: Michael Porter Five Forces Analysis Michael Porter’s Five forces framework as explained by Kotler and Keller (2011) as well as Proctor (2000‚ pg. 103) is an analysis method that involves analyzing a specific sector from five various perspectives in order to establish the nature of competition in the given sector. The five different forces in the framework consists of bargaining power of buyers‚ competitor rivalry
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PORTER’S FIVE FORCES 4 Power of Suppliers Criteria Level Effect on Power Effect on Profit Difference of Inputs High Increases Decreases Cost of Switching Suppliers High Increases Decreases Threat of Forward Integration High Increases Decreases Supplier Concentration High Increases Decreases Difference of Inputs Product differentiation within inputs in the tech industry is largely dependent on how recently the input has been developed (the extent of which it is considered
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in over 170 countries. A heritage of technological innovation. Leadership in responsible environmental stewardship. Carrier Corporation and CCAC - creating environments for life. Worldwide. * Concepcion Industries‚ Inc is a maker of electrical appliances such as air conditioning equipment and refrigerators. The company is based in the Philippines and was founded in the 1960s. The company is known for its several notable brands that include Carrier‚ Condura‚ and Kelvinator. * Carrier
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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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highly successful business people I’ve met over the past 25 years do one thing in common – and they do it extraordinarily well. They monitor their business environment to predict future market trends. They analyse external forces‚ such as their competitive environment‚ economic conditions‚ technological possibilities‚ political and legal forces‚ changes in demographics‚ seasonal factors‚ as well as shifts in social behaviour”. Basically they engage their crystal ball and they do it much better than
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