EWMBA 299 – Competitive Strategy Southwest Airlines Introduction 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
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EWMBA 299 – Competitive Strategy Southwest Airlines Introduction 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
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Legal: Deregulation of airline industry in the late 1970s. In the 1970s there was a general trend to deregulate the airline industry which had previously been mainly controlled by governments. So each government set fares rates, routes, customer service policies, entry and exit, intercarrier agreements, mergers, and consumer issues for its flag carriers as well as private businesses. However, in 1978, the US airline industry became partially deregulated through the Airline Deregulation Act. And
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STRATEGIC MANAGEMENT CASE STUDY SOUTHWEST AIRLINES SÜLEYMAN SİNAN ÖZTÜRK EBS 5103 STRATEGIC MANAGEMENT INSTRUCTOR: DR. AHMET BEŞKESE BAHÇEŞEHİR UNIVERSITY May 2013 Contents CONTENTS ................................................................................................................................... 2 INTRODUCTION: ......................................................................................................................... 3 THE HISTORY: ..........
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..................................... Wireless Internet Service............................................................................ Online Reservations and Customer Reviews............................................ Airline Package Deals................................................................................. Future Hotel Advancements....................................................................... Conclusion..............................
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Porter's Five Forces Model: analysing industry structure Author: Jim Riley Last updated: Sunday 23 September, 2012 Overview of the Five Forces Model Porter identified five factors that act together to determine the nature of competition within an industry. These are the: Threat of new entrants to a market Bargaining power of suppliers Bargaining power of customers (“buyers”) Threat of substitute products Degree of competitive rivalry He identified that high or low industry profits (e.g. soft
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growth of the Express Mail industry was mainly due to the success of the express delivery service. Thanks to Frederick Smith, a Yale undergraduate back in 1965, who had envisioned a whole different system on his economics term paper. Smith proposed an airline dedicated exclusively to express delivery of mail. Regardless of a “C” grade received on his paper, Smith incorporated Federal Express in 1971and officially began operations on April 17, 1973. Some of the features in the evolution of the Express
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four airlines: AirTran, Delta, WestJet and Air Canada. Introduction The drive for lower operational costs and increased efficiency has forced many companies of the world to turn towards mergers and acquisitions. However, even then when companies realize that cost cuts cannot be born out of “corporate marriages”. Instead a new trend in strategic management emerged to achieve similar objectives - forming alliances. Among the industries, alliances and networking are dominant in the airlines industries
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from 18 November 1996. When it is being established, AirAisa was originally founded by the government owned conglomerate, DRB Hicom. But unfortunately, the incident of World Trade Center attacked by terrorist on 11 September 2001 which influence the airline market trend and leading the worst loss in financial. On 2 December 2001, it was purchased by former Time Warner executive Tony Fernandez’s company Tune Air Sdn Bhd and who has remarkable turnaround which making a profit in 2002. AirAsia
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with Pacific Southwest Airlines, pioneering the concept in 1949. The European market did not really develop until aviation deregulation came into effect in the 1990’s, making flights affordable for a wider range of customers. Building on the inclining demand for cheap flights mainly by private individuals (average annual growth of 9.4% for leisure travelers between 1996 and 2003 [11], Figure 2), the industry has experienced rapid growth since then. Most notably, Irish airline Ryanair, formed in 1990
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