Southwest Airlines was started over 38 years ago as a small Texas airline and has grown to become one of the largest airlines in the United States because it differentiates itself as the most successful low-fare‚ high frequency‚ point-to-point carrier. Since 1987 Southwest has consistently led the entire airline industry with the lowest ratio of complaints per passenger boarded. What does Southwest do differently that no one else in airlines does? It keeps things simple and consistent‚ which drives
Premium Southwest Airlines Low-cost carrier Airline
implications of Southwest Airlines with respect to its impact on the airline industry. It will offer meaningful recommendations and plans for implementation. This will be done by looking at Southwest’s pricing strategies‚ costs‚ and competition and putting it in context with the industry as a whole. History‚ Development‚ and Growth Southwest‚ founded by Rollin King and Herb Kelleher‚ began as a small Texan airline almost 35 years ago and has grown to become one of the largest airlines in America.
Premium Southwest Airlines Airline Low-cost carrier
Southwest Airlines Strategic Practices Marion L. Boston MGT 450 Strategic Planning for Organizations Instructor: Mark Bojeun April 4‚ 2011 Introduction Southwest Airlines’ company strategy consists of competitive moves and business approaches management has developed to attract and please customers‚ conduct operations‚ grow the business‚ and achieve performance objectives (J. Gamble & A. Thompson. 2009. p. 2). In writing to inform the management team of the discussion‚ we will discuss
Premium Southwest Airlines Low-cost carrier Airline
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
Premium Southwest Airlines Airline Decision making
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
Premium Airline Southwest Airlines
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
Premium Airline Low-cost carrier Southwest Airlines
Abstract Airline companies are facing many challenges keeping their cost down and profits up. Some of the main issues are gas prices and pilots pay. CEO of Southwest Airlines‚ Gary Kelly‚ has been able to work with fuel companies to provide one of the lowest costs for gas than any other company. With his great knowledge and social personality‚ he has been a very effective leader for Southwest. The company’s core competencies is treating their customers with respect and showing them that they are
Premium Southwest Airlines Airline ATA Airlines
Southwest Airlines Executive Summary “The U.S. airline industry had lost money in 14 of the 28 years from 1980 through 2007‚ with combined annual losses exceeding combined annual profits by $15 billion. Yet in July 2008‚ Southwest reported record quarterly revenues‚ its 69th consecutive quarter of profitability‚ rising passenger traffic on its flights‚ and a record load factor.”5 With a brilliant strategy of ‘low cost/low fare/no frills’ Rollin King‚ along with Herb Kelleher‚ launched the
Premium Southwest Airlines Airline
Case study: Southwest Airlines 1. Southwest Airlines has been a highly successful undertaking. This is due in part to the marketing objectives it has set for itself. Its main objective was to create brand awareness/preference‚ customer value and be a market share leader. The next step was to come up with a marketing mix strategy of price‚ place‚ product and promotion to achieve its objective. Southwest cut out many amenities in order to differentiate itself from its competitors. Its main objectives
Premium Airline Southwest Airlines Low-cost carrier
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
Premium Marketing Positioning Pricing