1. Discuss Porter’s Five Forces of industry competition‚ with relation to the entry of Southwest Airline in the airline market. The Porter’s Five Forces are as followed: Rivalry: The rivalry factors that could influence Southwest include high fixed costs‚ excess capacity‚ low differentiation‚ and price war. Fixed costs in the industry mean the costs of planes‚ fuel‚ pilots‚ flight attendants‚ and additional staff for luggage and customer service. All of these factors need to meet governmental
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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 Internal Analysis Introduction This internal business analysis is on Southwest Airlines‚ which was founded in 1967 by Rollin King and Herb Kelleher. The main focus for Southwest Airlines was to provide low cost flights for their customers‚ and also have exceptional customer satisfaction. Southwest is a leading airline company that continues to do well in an industry that has been historically challenging. For instance‚ in the span of two years (2005-2007) five major airlines
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Southwest Airlines – Ethics of Compliance Embry-Riddle University The purpose of this paper is to present‚ discuss‚ and examine the topic of ethical and social responsibility. It will discuss Southwest Airlines ’ failure to comply with the Federal Aviation Administration ’s rules on inspecting aircraft and what violations occurred. On March 6‚ 2008‚ Federal Aviation Administration (FAA) inspectors submitted documents to the United States Congress‚ alleging that Southwest allowed 117 of its
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of motivation will produce a higher economic benefit to the profit of the company. The intent of this writing is to explore what the Path-Goal theory is‚ how it relates to leadership‚ and then apply the components to how James Parker‚ CEO of southwest airlines‚ appears to use them to facilitate daily operations within the company. The Path-Goal theory was developed from studies conducted by Robert House (Robbins 493). House chose to deviate from Fiedler’s traditional Contingency theories via focusing
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SOUTHWEST AIRLINES Southwest Airlines is the nation ’s low fare‚ high customer satisfaction airline. Southwest was incorporated in Texas in 1967 and commenced Customer Service on June 18‚ 1971‚ with 3 Boeing 737 aircraft serving 3 Texas cities Dallas‚ Houston‚ and San Antonio. At year-end 2004‚ Southwest operated 417 Boeing 737 aircraft and provided service to 60 airports in 59 cities in 31 states throughout the United States. Southwest Airlines topped the monthly domestic passenger traffic
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SOUTH WEST HAVARD CASE Southwest Airlines - A Case Study * Home Page» * Business & Economy» * Case Studies Southwest Airlines - A Case Study Synopsis of the Situation: From June 18‚ 1971 when it started operation from the Love Field in Dallas Texas‚ Southwest Airlines stands out as a company willing to do things differently and wanting to be the best Airline in America‚ and last year it was rated America’s best airline‚ both in the quality of its flights and the being the most
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Executive Summary In 2009 Gary Kelly‚ the CEO of Southwest airlines‚ was contemplating what it would take for Southwest to survive the economic downfall‚ due to high oil prices and decline in demand‚ that was upon the airline industry. One might argue that in the face of many options Southwest both diversified in there solutions as well as stayed true to the brand they had created. We will argue they did both. They branched out in terms of expansion and customer service‚ while remaining true to
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Case for Southwest Airlines 1. What benefits do airline customers seek when they buy air travel tickets? Has Southwest done a better job the competitors of meeting the needs of these air travelers? In what ways? They have always had the lowest price in any market it serves. It has caused the competitors to reduce their prices to match Southwest’s prices to stay competitive and has become known as the “Southwest Effect.” Because of the cost structure that was developed‚ Southwest did the opposite
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I. Overview Over forty years ago‚ Southwest Airlines began as a small airline determined to keep things simple. They strived to provide their customers with the lowest fares‚ get them to their destinations on time and‚ most importantly‚ make sure their employees and customers were happy throughout the whole process. These practices have been upheld over the years as the airline continues to grow and prosper. Southwest Airlines has maintained their small company roots and southern hospitality
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