2-0012 Southwest Airlines Corporation In 2001, Southwest Airlines Corporation’s (Southwest) year-end results marked 29 consecutive years of profitability. Southwest, which was incorporated in Texas, commenced customer service on June 18, 1971, with three Boeing 737 aircraft serving three Texas cities: Dallas, Houston, and San Antonio. The company grew to become the fourth largest U.S. airline (in terms of domestic customers carried). In 2002, it boasted a fleet of 366 Boeing 737 jets. Southwest was
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turmoil in the past two decades. This turmoil has brought to the fore the challenges being faced by the Aviation Industry in the world which have, in most cases, led to decreased profitability, lower growth rates, safety concerns and employee lay-offs among others. However, in-spite of the above mentioned challenges in the industry, Southwest Airlines has emerged as one of the most creative, most price competitive, safe, innovative and flexible company in the industry. The company has overcome unsurmountable
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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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1. What is the primary business issue described in the case? I think this case focused on Southwest’s overall competitive Strategy to remain successfully and grow in a challenging and unattractive industry. The case demonstrated how Southwest had been profitable and was able to expand for many years, while still maintaining a low-cost services. Let’s face it, all the providers in this industry do the same thing: They transport their customers from point A to point B through air travel. Southwest’s
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the case that formulates vision of the company’s growth strategy and addresses the following questions: 1. Would you consider the airline industry as attractive to compete in? NOTE: analyze industry’s dynamic evolution; apply Porter’s Five Forces model; explore opportunities and threats for being in the industry. Today? No, the airline industry is not attractive (cost structure – 80% fixed cost-, high barriers to enter – route, gates, …, etc.) 2. Why and how Southwest Airlines
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Introduction Southwest Airlines is a major airlines company which provides air transportation to the people in U.S. It is headquartered in Dallas, Texas, and employs 34,901 people. It was co-founded in March 16, 1967 as Southwest Co. by Rollin King and Herb Kelleher initially named Air Southwest until changing the name to Southwest Airlines in early 1971 (matthew, n.d.). The main objectives of the firm was to attract the passengers by providing convenient schedules, taking people to their destination
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Analysis of Strategic Structure of Southwest Airlines Uploaded by so cerious on Jun 26, 2006 [pic] |Analysis of Strategic Structure of Southwest Airlines | | | |Twenty-nine years ago, Rollin King and Herb Kelleher got together and decided to start a different kind of airline
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Case 3 Southwest Airlines business-level strategy was cost leadership. They have employed numerous ways to reduce cost while still providing great service for their loyal customers. The best evidence of this strategy was the decision to use one type of aircraft which cut out expenses such as maintenance, tools, and parts to name a few. The implementation of blended winglets and the use of EcoPower engine wash, which saved the company millions, were also good indicators of a cost leadership strategy
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Case Analysis – Southwest Airlines Corporation Jerry Pierce California Southern University Case Analysis – Southwest Airlines Corporation Introduction Southwest Airlines is America’s largest low-fare carrier, serving the most domestic customers than any other airline due to their unique combination of low fares, friendly customer service, record of safety, lack of fees, and “an extraordinary corporate Culture that extends into the communities (they) serve.” (Southwest, 2013) Incorporated
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Yuchen Sui MGT300 Management Update Report Southwest Dedicates New Heart Logo to Unhappy Workers Businessweek.com 9.8.2014 http://www.businessweek.com/articles/2014-09-08/southwest-dedicates-new-heart-logo-to-its-workers-amid-labor-dispute#r=read Summary: Southwest Airlines has been operating a lot worse than it did few years ago. Its high delay rate has caused frictions between front-line staff and executives. The airline is considering to introduce performance-based payments into the workers’
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