(1)A point-to-point route system gives customers more conveniences and speed the turnaround. (2)Southwest neither connected with other airlines nor sold interline tickets. (3)Southwest uses unique boarding way, ticketing processes and frequent-flier program.
All the elements of strategy are implemented to reduce the cost, improve the efficiency and satisfy the most customers. A point-to-point route system gives customers more conveniences and speed the turnaround. Southwest neither connected with other airlines nor sold interline tickets. It targeted business and pleasure fliers with relatively simple itineraries and short trips. Unique boarding way saved the time and encouraged the customers come earlier. The ticketing process of Southwest also saved money. The frequent-flier program is simple so it can attract the customers directly.
As we research, Spring Airline emulates the strategy of Southwest. But they are far from successful. They just carry out some methods to reduce cost. But the Chinese aviation market is so different from American’s. Their strategy didn’t win enough marketing advantages. (1) bad customers’ experience. The management of Spring Airline is chaos. For example the long route also has no meals that give the customers bad impression. (2) In short routes market, facing competition from train. In china, most people choose chain for short trip. (less than 500 miles) (3) no features except price and the advantage of price is not obvious. Compared with other airline, Spring Airline’s price is lower. But most time the other airlines have discount, that make the advantage of price is not obvious. As a small airline, Spring Airline’ s accesses are often at the worst position of airport.
Turnaround time means efficiency and cost of Southwest.
One additional minutes means Southwest needs 3.68 planes more.
1) price competition (2) slash of demand (3) the...