Southwest Airlines Case Study
Brittany Sogge
July 15, 2014
MKT5302
Marketing Analysis
Summer 2014
Instructor
Dr. Werema
Virtual Campus
Wayland Baptist University
Southwest Airlines
On June 18, 1971 Southwest Airlines began flying to three cities between Houston, Dallas, and San Antonio. Southwest’s initial focus was flights less than 500 miles, point-to-point flights, and a fleet consisting only of Boeing 737s, high frequency flights, low fares, and no international flights (p. 258). Southwest’s turnaround time was about 15 minutes as opposed to the industry average of 45 minutes.
Between 2000 and 2004, Southwest Airlines began service at four new airports: Buffalo, Albany, West Palm Beach, and Norfolk (Mertens & Vowles, 2012). …show more content…
Slogan: Doing the right things
Strengths. Southwest has many strengths including: the only Airline with 1st and 2nd bags flying free within the U.S.; considered the largest airline carrying 104 million passengers in 2011 compared to its’ main competitor United Airlines at 96 million; Southwest was named tenth most admired Company in the world in FORTUNE magazine 's survey of corporate reputations
Southwest has been in the airline industry for 40 plus years which gives it a strong brand image and is known for its great staff, loyal employees, and low turnover rate having laid off three people in the last 25 years; hiring them back almost immediately.
As of 2009, Southwest has the highest: operating margins except 2007 and operating yields. As of 2009, Southwest has the lowest: revenue passenger miles, load factors, unit costs per available seat mile, employees per aircrafts, and net …show more content…
Offering business/first class
3. Have flights to all 50 states in the US.
4. Start offering Wi-Fi, videos on demand, video games, satellite radio, etc.
Add ability to purchase tickets through mobile devices. This solution will give Southwest’s customers the ability and convenience to purchase their plane tickets whenever they want. Nearly everyone has a smart phone and most people would prefer convenience over price. If Southwest wants to expand its market, it needs to expand the way it attracts customers.
Offering business/first class. If Southwest goes in the direction of distinguishing seats on their flights, it could open the doors to a more diverse customer base. It might attract a wealthier client base as they will be identified as ‘First Class’.
Have flights to all 50 states in the US. In order to grab the attention of more customers, Southwest should consider having flights in every state in the US. This operation would be more costly than the previous two, but would most likely be a gain in the end if strategically implemented. Flying to all 50 states would attract more customers and have a steadier client base.
Start offering Wi-Fi, videos on demand, video games, satellite radio, etc. Southwest aims to please its customers. What better way than to make sure they enjoy their
Brittany Sogge
July 15, 2014
MKT5302
Marketing Analysis
Summer 2014
Instructor
Dr. Werema
Virtual Campus
Wayland Baptist University
Southwest Airlines
On June 18, 1971 Southwest Airlines began flying to three cities between Houston, Dallas, and San Antonio. Southwest’s initial focus was flights less than 500 miles, point-to-point flights, and a fleet consisting only of Boeing 737s, high frequency flights, low fares, and no international flights (p. 258). Southwest’s turnaround time was about 15 minutes as opposed to the industry average of 45 minutes.
Between 2000 and 2004, Southwest Airlines began service at four new airports: Buffalo, Albany, West Palm Beach, and Norfolk (Mertens & Vowles, 2012). …show more content…
Slogan: Doing the right things
Strengths. Southwest has many strengths including: the only Airline with 1st and 2nd bags flying free within the U.S.; considered the largest airline carrying 104 million passengers in 2011 compared to its’ main competitor United Airlines at 96 million; Southwest was named tenth most admired Company in the world in FORTUNE magazine 's survey of corporate reputations
Southwest has been in the airline industry for 40 plus years which gives it a strong brand image and is known for its great staff, loyal employees, and low turnover rate having laid off three people in the last 25 years; hiring them back almost immediately.
As of 2009, Southwest has the highest: operating margins except 2007 and operating yields. As of 2009, Southwest has the lowest: revenue passenger miles, load factors, unit costs per available seat mile, employees per aircrafts, and net …show more content…
Offering business/first class
3. Have flights to all 50 states in the US.
4. Start offering Wi-Fi, videos on demand, video games, satellite radio, etc.
Add ability to purchase tickets through mobile devices. This solution will give Southwest’s customers the ability and convenience to purchase their plane tickets whenever they want. Nearly everyone has a smart phone and most people would prefer convenience over price. If Southwest wants to expand its market, it needs to expand the way it attracts customers.
Offering business/first class. If Southwest goes in the direction of distinguishing seats on their flights, it could open the doors to a more diverse customer base. It might attract a wealthier client base as they will be identified as ‘First Class’.
Have flights to all 50 states in the US. In order to grab the attention of more customers, Southwest should consider having flights in every state in the US. This operation would be more costly than the previous two, but would most likely be a gain in the end if strategically implemented. Flying to all 50 states would attract more customers and have a steadier client base.
Start offering Wi-Fi, videos on demand, video games, satellite radio, etc. Southwest aims to please its customers. What better way than to make sure they enjoy their