Case 5.2 Southwest Airlines Corporation Problem formulation This case discusses the American based airline company Southwest Airline’s strategy and seeks to evaluate the basis on which Southwest builds its competitive advantage. Secondly‚ an analysis of Southwest´s control systems and what function they fill towards enabling the execution of their strategy. Arguments Southwest Airlines Corporation business strategy revolves around a cost-cum strategy. What this means is that their primary goal
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strategies to adapt to these changes. The overall environment of the Airlines Industry in the USA as found in this case‚ could be described as that of bitter rivalry. The hostility between competitors were so harsh that two rivals -Texas International and Braniff joined hands to destroy Southwest Airlines even before it could begin its operation. Failed to stop its operation‚ the rivals began to put up obstacles at every step Southwest took. No wonder‚ they were dubbed as "predator" meaning an animal
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According to Smith (2004)‚ Kelleher and King founded Southwest Airlines in 1971. Their intention was to provide what is described as a frequent‚ low-cost airline service in busy markets‚ no more than 500 miles‚ with its first flight between Dallas and San Antonio. Smith (2004) stated that approximately nine years after Southwest Airlines’ inception‚ it decided to adopt a particular mission statement. This particular mission statement is found on its website‚ emphasizes the highest quality of customer
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Southwest Airlines‚ Key Facts: Niche strategy. Concept: Concentrate in underutilized airports 1 type of aircraft fuel-efficient 737 (1994 more that 200 planes) Frequent‚ on-time departures Low cost fares‚ only 2 types of fares per root No seats assigned‚ no meals Point-to-point roots Higher equipment initialization‚ shorter turn-around times Competitive advantage: Cost structure "The workforce is dedicated to the company. They’re Moonies basically. That’s the way
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United Airlines Case United Airlines was founded in 1926‚ which gives the airline nearly 90 years of experience. United faced many challenges throughout its years of operation‚ however the airline has still managed to be relevant and competitive in its industry. Theses challenges include: mergers‚ acquisitions‚ war‚ the Great Depression‚ labor union strikes‚ buyout attempts‚ terrorist attacks‚ bankruptcy‚ and recessions. The Airline deregulation Act of 1978 was the genesis for the airline industry we know
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Southwest Airlines: Leading the Airline Industry one Statistic at a Time Victoria Mack May 6th‚ 2013 Quantitative Research Methods Term Paper I. Introduction “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.” (Kelly‚ Gary) By providing the highest quality of customer service‚ Southwest Airlines business model is set up to provide
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All About Chase’s New United MileagePlus Explorer Card By RON LIEBER For United Airlines customers wondering about the fate of their miles-earning credit cards in the wake of the airlines merger with Continental‚ the airline offered up an answer today. It’s a new Visa card called the MileagePlus Explorer. The annual fee is $95‚ which is more than the $60 that many United customers are paying for the entry-level mile-earning Visa currently. But the new card comes with a number of benefits. Cardholders
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EXECUTIVE SUMMARY Southwest Airlines Co. provides low-fare‚ "no-frills"‚ civil air transportation. The company was incorporated in 1967 and is headquartered in Dallas‚ Texas. As of December 31‚ 2005‚ it operated 445 Boeing-737 aircrafts and provided service to 61 cities in 31 states. The company also provides frequent flyer awards to business partners‚ including credit card companies‚ hotels‚ telecommunication companies‚ and car rental agencies. Southwest Airlines is the fifth largest airline company in
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Southwest Value Chain Analysis Outcomes / Accomplishments: low price‚ convenience service‚ customer loyalty low turnover & low costs‚ great union relationships‚ customers are brand ambassadors. Southwest Airlines (SWA) is consistent in their culture‚ business model‚ and customer interactions and engagement‚ all collectively reducing costs and enabling their point-to-point‚ efficient‚ low cost‚ friendly service. Their culture favors personal connection‚ community‚ recognition‚ support‚ and
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Situation Analysis: Entrepreneur Robert Deluce introduced Porter Airlines in 2006 aiming to create a higher value experience for its customers compared to other major players and competitors in the Canadian airline industry such as Air Canada and West Jet. The brand image is designed to provide upscale and refined service to its customers‚ giving the sense of traveling in first class with free amenities that competitors provide at very high prices such as meals‚ beverages‚ wine‚ etc. Even thought
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