At the onset of the airline industry in the United States‚ major network airlines were the sole providers of air travel. This multifaceted industry was a difficult industry to break into as a consequence of “sophisticated customer segmentation‚ hub-and spoke models and costly information systems for reservations‚ fare wars and intense competition” (Thompson 2008). Shrinkage in airline ticket prices augmented the demand for airline travel. Many markets were simply deserted or over-looked by major
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As of Year 2004‚ the American Airline industry stood at around 783 Million USD/year in terms of operating revenue with American Airlines‚ United and Delta being the biggest players. Southwest was the 6th largest player in the market. Since 2001‚ the airline industry on the whole has been suffering he losses annually. The seat-miles flown have increased manifold over the long term (from 1989 to 2004) indicating increase in adoption of air travel among the population while the revenue per mile has
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Illustrate the meaning of “Sustainable Competitive Advantage”. What was the main strategy adopted by Southwest Airlines that made it successful in the airline industry? Competitive advantage is a position of a company in a competitive landscape that allows the company earning return on investments higher than the cost of investments. Competitive advantage should be relevant‚ unique and sustainable. Therefore sustainable competitive advantage‚ it’s a long-term competitive advantage that a company
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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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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 (Ruppel‚ 2012). The people of Southwest are the single greatest strength and most enduring long term competitive advantage (Kelly‚ 2012). Southwest Airlines started out as Air Southwest Co in 1967; serving only three local airport hubs in Texas. The hubs were San Antonio (SAT)‚ Dallas (DAL) and Houston International Airport
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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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Comprehensive Case Analysis Southwest Airlines: What¡¦s Next? April 11‚ 2000 They Took a Great Idea and Made It Fly Southwest Airlines Company is a domestic airline that provides primarily short-haul‚ high-frequency‚ point-point‚ low-fare service to 53 airports in 52 cities in26 states throughout the United States. Southwest focuses primarily on point-to-point service‚ providing more direct nonstop routes for short-haul customers and‚ therefore‚ minimizing connections‚ delays and total
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Southwest History 1966: Rollin King marched into Herb Kelleher’s law office with a plan to start a low-cost/low-fare airline that would shuttle passengers between San Antonio‚ Dallas‚ and Houston. Thought of this idea because businessmen were complaining about the commute. 1967: Kelleher filed papers to incorporate the new airline and submitted an application to the Texas Aeronautics Commission for the new company to serve Dallas‚ Houston‚ and San Antonio. ------4 year legal and regulatory
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Ecole supérieure libre des sciences commerciales appliquées (ESLSCA) Strategic Management Paper Southwest Airline Strategic Audit Prepared By : Hesham Gamal El Din El Desouky Mohamed Dandash Wael Youssef Professor : Dr. Saneya El Galaly Group : 21-A Table Of Contents I. Executive Summary 5 II. SouthWest Airlines History 6 III. Current Situation 8 III.1. Current Performance 8 III.2. Strategic Posture 13 III.2.1. Mission & Vision 13 III.2.2. Objectives 14
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Corporate Strategy Southwest Airlines faced many barriers to entry from the fierce competition of other airlines in the industry. Though competition was fierce‚ Southwest Airlines managed to succeed by doing things differently. Their mission was to provide affordable air travel to those who would not normally fly. Contradictory to the rest of the airline industry‚ Southwest maintained a profit while keeping its fares low. Southwest was unique to the industry in two ways. They focused on the short
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