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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and Hobby‚ which is Southwest Airlines’ only profitable route. Southwest needs to determine how to respond to this threatening strategic pricing move by Braniff in order to continuously stay ahead of their losses‚ and possibly reduce or eliminate it further for that operating year. Situational Analysis 3Cs: Competition Before Southwest was established‚ two airlines were servicing the geographic market - Braniff International Airways and Texas International (TI) Airlines. Though both provide
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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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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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Southwest Airlines (A) Case Study 1. In June 1971‚ air transportation was not seen to be the primary transportation tool because of all the time wasted from checking in‚ expensive price‚ and air time. Therefore‚ SWA was not only competing with other airlines‚ but also on ground public transportations. SWA had to come up with a marketing strategy that will convince people that they are different from Braniff and other airlines that were seen to be inefficient and poor punctuality. SWA utilize
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Southwest Airlines Case Analysis Problem As a fledgling operation‚ how does a startup company compete within an established market in terms of price‚ performance and promotion Issues On February 1‚ 1973 Braniff airlines announced a half-price “Get Acquainted Sale” on all flights between Dallas and Houston. This was Southwest Airlines most profitable route. Southwest had to decide how to respond to Braniff Airlines move. Southwest Airlines is a startup business * They faced barriers to
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Introduction Southwest Airlines is a company that aims at having happy management‚ employees and customers. Unlike some companies‚ Southwest welcomes the idea of their employees being members of a labor union‚ agreeing that they need someone to speak for them in an effective way. Sure there are still some issues and differences that need to be worked out but that is what the union is there for. Review/Analysis of the Case As with any relationship‚ there is going to be goals and issues that the
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Mission Statement: 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. (source: Southwest.com website) Vision statement: Our vision is to expand our locations both domestic and overseas by being the largest and most profitable airline company to achieve both short and long-haul carriers efficiently and with low cost. Also to be an airline carrier that has the most productive
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base accurately measures the resources demanded by a cost object. Managers prefer to use more accurate costs in their decisions. 2-4 Factors affecting the classification of a cost as direct or indirect include • the materiality of the cost in question‚ • available information-gathering technology‚ • design of operations 2-5 A variable cost changes in total in proportion to changes in the related level of total activity or volume. An example is a sales commission that is a percentage of
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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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