senior IT leadership stated that IT was critical success factor that would help WestJet to sustain its growth and succeed in the long term. They agreed that a transformation plan was necessary. Smith and the IT leadership understood that an increase in IT system functionality would increase revenue and would give business units confidence through transparency in operations and quick responses. The changes would help WestJet to expand regionally and internationally. Smith and IT leadership knew for
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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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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
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Strategy and Policy Case 2. Southwest Airlines. I- Strategic Profile and Case Analysis Purpose Southwest airlines were founded in 1971 by King and Herb Kellerher. They started with a low cost strategy in a risky market where profitability depends a lot on fuel prices and external factors‚ such as the willingness of consumers to pay ticket prices. They started growing a lot with various strategies that permitted them beat a lot of their competitors‚ but in order to stay in the market they
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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 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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Southwest Airlines Case Analysis Problem As a fledgling operation‚ how does a startup company compete within an established market in terms of price‚ performance and promotion Issues On February 1‚ 1973 Braniff airlines announced a half-price “Get Acquainted Sale” on all flights between Dallas and Houston. This was Southwest Airlines most profitable route. Southwest had to decide how to respond to Braniff Airlines move. Southwest Airlines is a startup business * They faced barriers to
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Southwest Airlines: A Case Analysis ORGANIZATIONAL ANALYSIS It is evident that the greatest strength that Southwest Airlines has is its financial stability. As known in the US airline industry‚ Southwest is one of those airlines who are consistently earning profits despite the problems the industry is facing. With such stability‚ the corporation is able to make decisions and adjust policies‚ which other heavily burdened airlines may not be able to imitate. Having a low amount of cost in their
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was introducing a 60-day‚ half-price sale for flights between Dallas and Hobby‚ which is Southwest Airlines’ only profitable route. Southwest needs to determine how to respond to this threatening strategic pricing move by Braniff in order to continuously stay ahead of their losses‚ and possibly reduce or eliminate it further for that operating year. Situational Analysis 3Cs: Competition Before Southwest was established‚ two airlines were servicing the geographic market - Braniff International
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mainly a marketing and sales operation. This was decided in an effort to create a North America business company that will leverage resources and working capital. The change decision was initiated by the CEO and the US President‚ supported by the Leadership team that consisted of the Chief Supply chain officer‚ the VP of merchandising‚ the senior director of operations as well as the Canada Vice president and Merchandising and Marketing Manager Current Situation It’s been a year since the integration
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