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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Southwest has made an organization out of providing low-fare‚ short haul routes between city pairs. It has concentrated specifically on offering low-fares on all of its flights by maintaining its no frills attitude and high frequency of flights. This has afforded Southwest Airlines with the lowest cost structure in the industry. Southwest has created a niche for itself by flying a network of flights between smaller U.S. cities that average just one hour apart. This has differentiated them from
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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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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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An Economic Analysis of the Airline Industry The history of the modern United States airline industry can be traced to the Boeing Company’s introduction of the 707 jet model in 1952 (The Airline Monitor‚ 2005). The earliest airline companies actually formed in the days of the propeller-driven craft when passenger capacity was limited to relatively small airplanes. Shortly after the successful introduction of Boeing’s 707‚ passenger traffic increased to the point that trains and ships quickly
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