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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1. Provide a brief background of the CEO. Founded March 15, 1967 by Rollin King and Herb Kelleher, Southwest Airlines is currently the biggest domestic carrier by number of passengers serviced (Southwest Airlines, 2014). As of May 2013, the company has a market cap of approximately $9 billion (Forbes Magazine, 2013). Gary Kelly, who joined Southwest as controller in 1986, is the company’s current chairman, president, and CEO. Gary was born and raised in Texas and received a bachelor’s degree in
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“Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large” (American Marketing Association, 2011, Website). “Management process through which goods and services move from concept to the customer. As a
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background Southwest Airlines is one of the US based major air carrier based out of Dallas Texas where it commenced operations on June 18, 1971. It was founded by Rollin King and Herb Kelleher got together and decided to start a "different kind of airline”. " They began with one simple notion: If you get your passengers to their destinations when they want to get there, on time, at the lowest possible fares, and make darn sure they have a good time doing it, people will fly your airline" (1). Southwest
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The domestic airline industry is a difficult industry to compete and operate in; it is characterized by high capital requirements, high barriers to entry, low or no growth, rising costs, high competition, and strict government regulation. In addition to rising fuel costs, which happens to be a major issue, events such as the economic recession, swine flu outbreak, and 9/11 attacks have negatively effected or still continue to negatively effect domestic airline travel. To survive and reduce losses
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behavioral theories, and creates a change strategy for Borders Book to save the company assuming the failure did not take place yet. Part One A- Southwest Airlines Objective, Mission, and Vision Southwest Airlines was founded in March 15, 1967 by Rollin King and Herb Kelleher, ("About Southwest"). They wanted to start a different airline that advocated for the people. Their objectives were to get passengers to their destinations when they wanted to be there and for the lowest fare possible
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Running head: VALUES AND ETHICS: SOUTHWEST AIRLINES Values and Ethics: Southwest Airlines University of Phoenix Management 521 Abstract Personal values and organizational values are important concerning decisions for any company. Those values and the decision-making style of one team member, based on the Williams Institute Ethics Awareness Inventory Assessment, correlates with the organizational style of Southwest Airlines, as discussed in this paper. Ethics, values, and character are critical
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A Financial Analysis of Southwest Airlines Co. Accounting for Financial Decisions BA812 Professor Wayne Drake May 20, 1998 Gillian Ainsworth Jennifer Goidell Christine Ledoux Tarak Modi Gerald Owens Robin Walters Southwest Airlines: Twenty-Six Years of “LUV” Twenty-six years ago, Rollin W. King scribbled three lines on a cocktail napkin, leaned across the table, and muttered to his longtime friend: “Herb, lets start our own airline”. Herbert D. Kelleher loosened his tie and knitted
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of capital investment relative to personnel employment. It also demonstrates less customer interaction along with providing a service standardisation rather than customsation. For example, all inter-city train service providers, in accordance with airline services, offer customers similar services and basic infrastructures such as train capacity, facilities and security; they are described in the nature of Service factory. Whilst fast food services provide less customised services but there are more
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Southwest Strategically Robert E. Woodward Embry Riddle Aeronautical University Abstract The following document will discuss and analyze how Southwest Airlines has become an industry leader in the air carrier business. How has Southwest Airlines adapted after the attacks on the Twin Towers of New York and the Pentagon on September 11, 2001. Where is the company headed in the future? Recommendations after a SWOT analysis will be made on how Southwest could remain one of the dominant leaders
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