SOUTHWEST AIRLINES Presented by: Allan Abutin Rick Boone Peter Bond Bethany Lam Phuong Nguyen A. EXECUTIVE SUMMARY Southwest Airlines has been serving its customers since 1971 and has focused its business on convenience‚ customer service and low-cost flights. From the outset‚ the two founders were dedicated to success and the company has taken many steps since then to accomplish this. Through the use of technology‚ strategic placement of travel routes and keeping the business person
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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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Case Study-Southwest Airlines Leadership is one of the four functions that constitute the management process. And it is also one of the most popular management topics. Leadership is the process of inspiring others to work hard to accomplish important tasks. This essay will discuss the visionary and servant leadership and indicate which one is applied to Herb Kelleher and how The visionary leadership describes a leader who brings to the situation a clear and compelling sense of the future and
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The domestic US airline industry has been intensely competitive since it was deregulated in 1978. In a regulated environment‚ most of the cost increases were passed along to consumers under a fixed rate-of-return based pricing scheme. This allowed labor unions to acquire a lot of power and workers at the major incumbent carriers were overpaid. After deregulation‚ the incumbent carriers felt the most pain‚ and the floodgates had opened for newer more nimble carriers with lower cost structures
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MARKETING SPOTLIGHT- SOUTHWEST AIRLINES Southwest Airlines entered the airline industry in 1971 with little money‚ but lots of personality. Marketing itself as the LUV airline‚ the company featured a bright red heart as its first logo. In the 1970s‚ flight attendants in red-orange hot pants served Love Bites (peanuts) and Love Potions (drinks). With little money for advertising in the early days‚ Southwest relied on its outrageous antics to generate word-of-mouth advertising. Later ads showcased
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Southwest Airlines’ Seven Secrets for Success What’s the airline-industry jargon for unconventional wisdom? Southwest Airlines. By some estimates‚ the country’s major carriers have consumed perhaps $100 billion in capital during the past decade‚ but Southwest Airlines continues to be profitable. It’s been in the black for 33 consecutive years and‚ last week‚ for the 127th consecutive quarter‚ it paid a modest dividend. Its balance sheet‚ with about $3 billion in cash on hand and $600 million
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with as many outlets as feasible. The distribution strategy of the airlines industry was not a part of its early history‚ but is now integral to the success of airline organizations. The airline industry did not require a distribution strategy initially because passengers could purchase flight tickets directly from the airline’s desk. McDonald (2007) discusses the evolution of airline distribution from purchasing at the airlines counter to the addition of call centers and city ticket offices to
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Overview and Background. Southwest Airlines‚ since the beginning has struggle and fight to get in the airline business. Starting with Dallas‚ Texas. Southwest had to fight to stay at Love field airport‚ when all the airlines moved to the new Airport of Dallas-Fort worth International airport. Winning this battle gave Southwest the opportunity to get all the customers they wanted‚ from the near downtown airport‚ instead of driving 15 miles for the new airport‚ pay for expensive parking and having
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Strategy – BAD 4013 – SUMMER 1999 Case Study Southwest Airlines I. Strategic Profile and Case Analysis Purpose 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. Twenty-seven years ago‚ Rolling King‚ owner of floundering commuter airline‚ and Herb Kelleher‚ King’s lawyer‚ got together and decided to start a different kind of airline that would provide a short-haul‚ low-fair‚
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Southwest and Continental Airlines: A Managerial Economic Perspective Introduction In order for companies to maximize profits and productivity‚ it is important that they implement managerial economics on both a day-to-day and strategic basis. This paper will compare and contrast Southwest and Continental Airlines from a managerial economic perspective. The goal of the paper is to critically analyze both companies on their use of managerial economic practices. The Airline industry is a capitally
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