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Southwest Airlines Essay

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Case Analysis – Southwest Airlines
    • Vision
    • Mission
      - Positively Outrageous service
      - People in their employees first

Identify Strategic Objectives

    • Financial
      - Not heavily debt financed
    • Non-Financial
      - Quick, efficient, no frills

Identify Current Business Strategy

    • Does It Make Sense? Why?
    - Not a hub and spoke airline – hubs require a huge investment (baggage handlers, etc)
    - Convenient to the travellers
    - Sold tickets online
    - No reserved seating
    - Good promotions/marketing (i.e. giving away a bottle of whisky; increase loyalty)
    - Entire fleet: Boeing 737 – maintenance is much easier
    - Southwest did San Antonio, Dallas and Houston triangle – starting up


1. Industry
    • Five Forces – Look at the industry today (*implication to the industry)
      No indication that things in their industry are going to lighten up; more mergers & acquisition, more rivalry; will likely spell the end for some and others will prosper
      Airline Industry
    - Potential increase in competitors; makes rivalry more intense
    - Major airlines are coming out of bankruptcy; becoming more cost efficient to improve their share
    - Airlines trying to duplicate their strategy
    - Mergers are still in effect
    - Competitors offering rebate or frequent flyer miles
      Barriers to Entry
    - A lot of bankruptcies and mergers
    - One of the most unattractive industries; if you can achieve the KSF, if you have the best strategy and execution of strategy, you will be successful
    - Go for cheaper flights; access to information increases buying power
    - Customer loyalty is not that high ( price is important
    - Customers prefer price, convenience
      Suppliers can’t integrate forward, airlines can’t integrate backward
      There are a few suppliers
      No bargaining powers...

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MLA Citation

"Southwest Airlines". Anti Essays. 19 Dec. 2018


APA Citation

Southwest Airlines. Anti Essays. Retrieved December 19, 2018, from the World Wide Web: http://parimatch-stavka7.com/free-essays/Southwest-Airlines-529569.html

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