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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Executive Summary Southwest Airlines is one of the most profitable airlines in the airline industry. During turbulent economic times Southwest has managed to continue strong revenue growth in a disastrous environment and has operated profitably for 39 consecutive years (Mintzmyer‚ 2012). Southwest Airlines has capitalized on the company’s strength of being the top low cost carrier by offering a simple and efficient business plan that prides itself on customer service. Southwest utilizes only the
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Strategic Management The Concept of Market Position and The Strategic Objectives Objectives The Concept of Market Position Philip Kolter Ries and Trout The Strategic Objectives Strategic Thrust Strategic Objectives Build Hold Niche Harvest Divest The Concept of Market Position by Philip Kolter Market Leader Market Challenger The firm has a relatively large share of the market‚ but a smaller share than the market leader. Market Follower The firm
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[pic] Southwest Airlines Financial Performance Analysis Presented to Gary C. Kelly Chairman of the Board‚ President and CEO by Total Resource Network Raquel Alston‚ Tanya Spencer and‚ Nicole Stenhouse for BUS 515 Financial Management Professor James Kerwin October 3‚ 2011 Introduction Total Resource Network (TRN) congratulates Southwest Airlines for thirty-eight years of consecutive profitability. This is a major accomplishment that should be applauded especially
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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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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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Summary of Southwest Airlines: Does “LUV” Last?* First time in history‚ Southwest Airlines had its “LUV” for customers questioned. The Federal Aviation Administration (FAA) levied a record $10.2 million fine on Southwest Airlines. They accuse them after missing mandatory safety checks of flying 117 planes on nearly 60‚000 flights between June 18‚ 2006‚ and March 14‚ 2007. Both the FAA and Southwest testified. FAA officials were blamed for being “too close” to the airline and being
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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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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 Motivational Profile A motivational profile can provide insights into whether a company is doing the right thing or requires improvements. Although nearly every company proclaims its goal is to deliver exceptional service‚ research confirms that the service quality of many corporations is below consumer expectations. Southwest Airlines has created a competitive advantage through valuing employees’ needs as a strategy that motivates them to provide better customer service (Hallowell
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