Southwest Airlines Case Study

1093 Words Aug 24th, 2007 5 Pages
BibliographyKernin, Roger A. and Peterson, Robert A. Strategic Marketing Problems: Cases and Comments. 11th Edition.

Southwest AirlinesSouthwest Airlines employees came together in late January 1995 for their weekly Tuesday meeting. A main topic of discussion was the competitions between Southwest airlines and "Continental Lite" and "Shuttle By United". As they were beginning the meeting a staff member advised the team of two changes "Shuttle By United" made to its service and pricing. First was the discontinuation of service for the Oakland-Ontario, California market. Second, the one-way walk-up first class and coach fairs had been increased by $10.00. The focus of that Tuesday meeting was set aside and the attention focused on what to
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Finally, Southwest flew only Boeing 737 jets in coach. Due to all of these combined operations, Southwest's cost per seat was the lowest among major U.S. carriers.

Southwest focused on creative marketing techniques to differentiate itself from other carriers. Service, convenience and price were represented in the marketing effort.

Southwest was also focused on its people. The relationships with the employees were very important to Southwest and that is why it was listed as one of the top ten companies to work for.

Southwest achieved record revenue and income levels in 1994 but their net income fell 47 percent. These results were due to a few factors such as an acquisition, competitors' use of fare sales and the airline-within-an-airline initiatives launched by Continental and United.

RecommendationsAfter all of these facts about Southwest Airlines and the airline industry in general I came to an answer about how Southwest should respond to the changes of United Airlines. I believe Southwest should continue with its present price and service strategy. I do not believe any changes should be made. Southwest will continue to achieve revenue do to its low prices and its excellent customer service.

Southwest Airlines should continue to service its local customers on non-stop flights. When I fly short distances there are three main things that I look for in a flight: cheap, non-stop and friendly employees. Southwest Airline

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