Michele Lynn October 12, 2008 Marketing – Resnik Case Study: Southwest Airlines Air travel has its ups and down, as does basically any type of travel. However, Southwest Airlines has always been my favorite airline to fly. As a young single who loved traveling, I found their fares and schedules to be the most convenient for my taste. I always appreciated the staff’s sense of humor, and it really never bothered me where I sat, so I didn’t mind the “A, B, C” boarding groups as opposed to
Southwest Airlines In today’s competitive market, consumers look to companies that not only provide outstanding service and goods, but also, a business that recognizes taking care of its employees, stockholders, consumers and the community as a priority. One company that is consistently recognized for their corporate social responsibility initiatives is Southwest Airlines. Southwest is a successful organization that perfectly blends operational focus with social obligations which translates into
in the demographic and economic environments, such as declining unemployment rates and rising income levels. Therefore, airline companies such as Southwest Airlines differentiate their brands from competitors by proactively creating value for customers. Since 2001, the airline industry has experienced greater costs due to the failing economy, volatile prices for fuel, and increased global competition. In order to combat these environmental factors, Southwest Airlines keeps airfare costs lower than
miles (CNN 2015). Southwest Airlines is one of the major airlines in the US and the one of the world 's largest low-cost carrier. The airline was created by Herb Kelleher in 1967, their headquarters are in Dallas, Texas. This paper will reflect and analyze the current situation of Southwest and the rest of the airline business by using the PESTEL analysis, value chain analysis, and the ROS, which will compare them to their competitors such as Jet Blue, Delta, and American airlines. In analyzing the
1. According to the authors of the case study, some of the market conditions of the U.S. airline industry in the early 1990s were triggered by the Airline Deregulation Act of 1978. In essence, “deregulation created greater competition and growth opportunities… laws restricting the airline industry loosened in the spirit of greater competition.” (Marketing Management, page 15). The impact of deregulation became evident in several areas: Removing regulatory price controls was followed by lower average
Southwest Airlines Competitive Position The domestic airline industry transports 711 million souls a year. That translates into a staggering $709 billion a year revenue flow (statista.com). One firm, named Southwest Airlines, accounts for 18.3 percent of that market. That 18.3 percent market share places Southwest at the number two spot, behind American Airlines. How does Southwest Airlines successfully compete and thrive in this environment? How do they differentiate themselves from the hoards
WS5A4 Southwest Airlines - Case Study Operating under an intensely competitive environment, Southwest Airlines carefully projects its image so customers can differentiate its product from its competitors. Southwest positions itself in all its marketing communications as the only low-fare, short-haul, high-frequency, point-to-point carrier in America that is fun to fly (Cheng, 2010). Its low-priced fares are a brand equity which it "owns" in the mathematical sense of being the only major airline with
who’s are 5.67 and 217 per billion miles (CNN 2015). Southwest Airlines is one of the major airlines in the US and the one of the world 's largest low-cost carrier. The airline was created by Herb Kelleher in 1967. Their headquarters are in Dallas, Texas. By using the PESTEL analysis, Value Chain Analysis, and the Return Of Sales (ROS), I will analyze Southwest. It will compare them to their competitors such as Jet Blue, Delta, and American Airlines. In using the PESTEL analysis, only half of the
1. Southwest Airlines is an Equal Opportunity Employer, therefore, has diversity in their employees from all over the world. They have employees from different cultures and experiences. Southwest Airlines invites military personell, active and retired veterans to apply. They also offer positions to qualified disabled individuals and disabled veterans. According to Forbes, “The icing on the cake is an elaborate recognition program for all employees who are recognized by customers. They are lauded
The mission statement is important for both companies. A mission statement tells a story of what the company stand for and how strong they feel about taking care of the customer. The purpose and drive how these two great successful companies. Southwest Airline company follow a practice servant leadership model versus Coca Cola who practices standard leadership model. Two big company share two different leadership models but are both successful. It’s interesting to know about their model’s similarities