Southwest Airline’s Strategies: Southwest Airline’s successful strategy consists of three complementary qualities which are focus‚ divergence and compelling tagline. This short-haul airline believes that by focusing on friendly service‚ speed and frequent point-to-point departures‚ its low pricing is able to compete against car transportation. While other competitors try to delight customers by investing in meals‚ airport lounges and seating selections‚ Southwest chooses to eliminate or reduces
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Executive Summary Southwest Airlines is one of the most profitable airlines in the airline industry. During turbulent economic times Southwest has managed to continue strong revenue growth in a disastrous environment and has operated profitably for 39 consecutive years (Mintzmyer‚ 2012). Southwest Airlines has capitalized on the company’s strength of being the top low cost carrier by offering a simple and efficient business plan that prides itself on customer service. Southwest utilizes only the
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2002‚ Southwest Airlines stock returned more for their shareholders than any other stock in the same time period (Collins‚ 2006‚ Hospital Strategy IV: Southwest Airlines and thinking outside the box). Many companies have begun to take notice of the Southwest model; a model that allows Southwest to thrive while many of its contemporaries are faced with financial difficulties. The success of Southwest Airlines can be attributed to their structure. This structure has made it possible for Southwest Airlines
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Southwest Airlines Business Operations Southwest Airlines continues growth during challenging times with no its low price‚ no frills and good customer satisfaction‚ setting themselves apart from the competition. Organizational change is part of the culture that successfully allows Southwest Airlines to set itself apart. The airline industry is subject to external forces such as fuel prices‚ labor costs‚ passenger economic status‚ and public perception. Southwest Airlines has developed a successful
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BibliographyKernin‚ Roger A. and Peterson‚ Robert A. Strategic Marketing Problems: Cases and Comments. 11th Edition. Southwest AirlinesSouthwest Airlines employees came together in late January 1995 for their weekly Tuesday meeting. A main topic of discussion was the competitions between Southwest airlines and "Continental Lite" and "Shuttle By United". As they were beginning the meeting a staff member advised the team of two changes "Shuttle By United" made to its service and pricing. First was
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Southwest Airlines Case Summary Southwest Airlines was originally named Air Southwest. It was started on March 15‚ 1967‚ by Rollin King and Herb Kelleher. Southwest Airlines is an American low fare airline based in Dallas‚ Texas. It is also the largest airline in the United States by number of passengers carried domestically in a year and the third largest airline in the world by number of passengers carried. Southwest is also one the most profitable airlines in the world posting a profit
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The airline industry is a tough place to make money because of its price sensitive customers‚ too many competitors‚ high capital intensity and boom-or-bust cyclicality. Even though with all these factors‚ Herb Kelleher‚ the cofounder and chairman of Southwest Airlines‚ created the sort of value that any company leader would envy. Herb Kelleher embraced servant-leadership as his style. Servant-leaders put their people above themselves‚ care about their employees‚ humble and empower their people. These
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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.
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1. In my opinion‚ Southwest should not save low-numbered boarding cards for its most frequent fliers. First of all‚ that would go against the idea of having simplicity in its operations systems. If Southwest reserved their low number boarding cards for its most frequent fliers‚ the airline would run into complications with customer seating preferences or disagreements. This would cause the established simple system of Southwest to be ineffective if certain exceptions would be made for frequent fliers
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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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