Southwest Airlines Case Study Essay

1333 Words Oct 11th, 2010 6 Pages
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 prices, a substantial increase in price variation, and efforts to soften price competition through differentiation and increases in brand loyalty. Therefore, one can surmise that the marketing-mix or the four Ps of marketing (product, price,
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However, while market opportunity to meet the needs of price-sensitive consumers doesn’t guarantee success, the unmet need for “low-fare, low-frill” carriers created a “trend that revealed the shape of the future” (Marketing Management, page 72) in the airline industry.

3. The authors of the case study suggest that Southwest has been able to consistently grow and prosper in the U.S. passenger airline industry because of its emphasis on low fares, convenience, exceptional customer service, operations, creative marketing and its commitment to employees (culture). Collectively, “these various pillars of its operations successfully delivered value and satisfaction to the target buyer.” (Marketing Management, pages 13 & 14) The textbook defines value as: “the sum of the perceived tangible and intangible benefits and costs to customers.” What’s more, the textbook also defines satisfaction as: “a person’s judgment of a product’s perceived performance in relationship to expectations.”

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