Diagnosis: I believe that a company’s biggest problem is the major airlines will become efficient and compete on cost with the company. In short-term‚ they enjoy success in low fare position with low cost for few years with the competitive advantage. In long-term‚ the competitors will learn how to decrease their cost so that the company will lose their position. In other words‚ they can not enjoy the competitive advantage. Finally‚ the problem can cause the company about a slowdown in entire company’s
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The Differences of Strategic Positioning Between Southwest Airlines Corporation and Continental Airlines Nowadays‚ Porter’s 5 Rules of Strategic Positioning as a most common business theory plays a significant role in operating companies and planning business activities. Southwest Airlines Corporation (Southwest) proves that clearly by its success. And the year-end results of Southwest marked 29 consecutive years of making profit (Govindarajan and Lang‚ 2002). I will elaborate how the Porter’s 5
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F . WARREN MCFARLAN Tale of Two Airlines in The Network Age: Or Why The Spirit of King George III Is Alive and Well! As Professor Roger McPherson’s wait to go through the security process a second time dragged on into its third hour on this Spring day in 2002‚ (all passengers had to be rescreened upon the discovery that one of the airport screening machines was unplugged) he was reminded of another delayed business trip and the role that information technology played in the story. At 5:30pm
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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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Executive Summary Southwest Airlines has been a strong growth company over the last 35 years. Using its low-cost‚ passenger friendly‚ point-to-point operational strategy‚ Southwest has been able to sustain considerable growth year after year and remain profitable for 33 straight years. While Southwest has gained market share in recent years‚ legacy carriers have struggled due to depressed market conditions. The entire airline industry has endured expensive labor contracts‚ soaring energy costs and
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Southwest Airlines Case Summary Southwest Airlines was originally named Air Southwest. It was started on March 15‚ 1967‚ by Rollin King and Herb Kelleher. Southwest Airlines is an American low fare airline based in Dallas‚ Texas. It is also the largest airline in the United States by number of passengers carried domestically in a year and the third largest airline in the world by number of passengers carried. Southwest is also one the most profitable airlines in the world posting a profit
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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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evaluate the adaptation of the marketing mix (MM) of two airlines with respect to a certain marketing tactic. Therefore‚ Etihad Airways‚ the national carrier of the United Arab Emirates (UAE) and the South African low-cost carrier Mango have been chosen for the comparison. Hence‚ brand positioning and awareness will be appraised as a marketing tactic for both airlines. Secondly‚ this report will compare and evaluate how these two airlines adapt product and promotion as part of the MM in order
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the airline industry. It is very unpredictable and with that prone to high uncertainty levels. The demand is volatile and the capacity is largely fixed which leads to a number of issues in need of being assessed. One of those is the jet fuel price volatility which impacts the airline industry dramatically. The constant shifting around of fuel costs‚ largely based on political developments which are uncontrollable‚ cause great uncertainty for most of the airlines‚ including Malaysia Airlines. Even
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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 battle from rival airlines------ 1971 (January): Lamar Muse brought in
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