Instructor Case: Southwest Airlines in 2010 Dr. Deb Sircar University of Greenwich Business School http://create.mcgraw-hill.com Copyright 2012 by The McGraw-Hill Companies‚ Inc. All rights reserved. Printed in the United States of America. Except as permitted under the United States Copyright Act of 1976‚ no part of this publication may be reproduced or distributed in any form or by any means‚ or stored in a database or retrieval system‚ without prior written permission of the publisher
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What are the sources of Southwest Airlines’ competitive advantages? There were three keystones to Southwest Airlines’ competitive advantage. The first lied in its employees and how they were managed. Secondly‚ the firm sought to identify major threats and opportunities in their competitors‚ and assess how Southwest could improve and capitalize on markets where their competition failed. And the final significant success factor was the company’s cost structure. Former CEO‚ Herb Kelleher‚ was
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pricing strategy? Why has this pricing strategy been so successful throughout the airline’s first three decades? Traditionally‚ Southwest used a low-price strategy. They were known as always offering the cheapest flights. The air line did not serve meals‚ had no assigned seats‚ no electronic entertainment‚ and no retirement plans for employees. Because Southwest had such lower costs‚ they were able to crush competitors. This pricing strategy was so successful throughout the airline’s first
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2. Justify your allocation based on your outlook for systematic risk in the U.S. Systematic risk is primarily based on the risks that are associated with actual or real events that may affect the market. This includes interest rates‚ inflation‚ wars and all that can affect the market and cannot be avoided through diversification. Systematic risk can be associated with riskier securities if and when compared to bonds. This rate of return is mainly unpredictable but can be profitable. My reasoning
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PRICE RANGE OF PRODUCTS Above is the price range of all Apple products between the years of 1975 to present. Steve Jobs manufactured products that were not just far advanced than other products in the same category‚ but they were also out of reach for most consumers. When Apple Computer launch its Apple II in 1977‚ it cost $1‚298 and if you wanted a more powerful version it would cost you a twice that amount. In 1984‚ Apple Computer released the Macintosh at a price of $2‚495. At these prices
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SOUTHWEST AIRLINES CASE STUDY ASSIGNMENT – SUGGESTED STRUCTURE Cover page Contents page MAIN BODY INTRODUCTION (150 WORDS) Purpose of the report What does Southwest Airlines do? What is the background to the organisation? What industry does it operate in? What are its geographical markets? What products and services does it offer and what are the market segments? What are Southwest Airlines’ mission‚ vision and values? What generic strategy
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A Financial Analysis of Southwest Airlines Co. Accounting for Financial Decisions BA812 Professor Wayne Drake May 20‚ 1998 Gillian Ainsworth Jennifer Goidell Christine Ledoux Tarak Modi Gerald Owens Robin Walters Southwest Airlines: Twenty-Six Years of “LUV” Twenty-six years ago‚ Rollin W. King scribbled three lines on a cocktail napkin‚ leaned across the table‚ and muttered to his longtime friend: “Herb‚ lets start our own airline”. Herbert D. Kelleher loosened his tie and knitted
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[pic] [pic] AirAsia Company 1. Company Background: AirAsia‚ as the second Malaysian National Airline‚ provides a totally different type of service in line with the nation’s aspirations to benefit all citizens and worldwide travellers. Such service takes the form of a no frills - low airfares flight offering‚ 40%-60% lower than what is currently offered in this part of Asia. The story of emergence of AirAsia is similar to Ryanair‚ since both carriers underwent a
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Southwest Airlines Case Analysis 1. How does Southwest Airlines increase the customer’s willingness to buy (customer value)? Southwest airline creates customer value by providing an all around pleasant travel experience for its customers. Its ground and flight crew are extremely accommodating and flights are safe and on time. The fares are inexpensive compared to other hub and spoke airlines‚ which are attractive to business travelers during weak economies as well as to other travelers
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On-Boarding Approach Southwest Airline There are a few companies out there that truly understand the importance of On-boarding. Southwest airline has taken an approach that resonates with all employees new and old. Their understanding of human culture and how people absorb information is vital to their process. Human beings are emotional creatures‚ thus learning from this they have produced an effective on-boarding procedure. Stimulating a positive emotion has been the Idea behind a successful
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