Southwest Airlines Case Study Essay
Marketing. Marketing savvy also plays a key role in Southwest's strategy. Since Southwest's inception, the major elements of the product offering have been price, convenience and service. As a Texas native serving mostly Texas markets, it has played the role of the hometown underdog, fighting against the majors. Now, when Southwest enters a new market, they use a sophisticated combination of advertising, public relations, and promotions in the belief that once people fly Southwest they will be hooked.
Growth. Despite its remarkable growth in what had been until recently a relatively moribund industry, Southwest has not emphasized growth as an objective. In fact, Herb Kelleher expresses a "go-slow" …show more content…
This network supports a reservation system that has enabled Southwest to be the first carrier to offer ticketless travel on all of its flights. They now average more than 15,000 ticketless passengers per day, according to Robert W. Rapp, Vice President of Systems. The ticketless system offers significantly improved customer service by eliminating lines at ticket counters. The system also reduces costs; it is estimated that it costs an airline from $15 to $30 to produce and process a single paper ticket.
Customers using the Southwest ticketless system can purchase a seat on a Southwest flight by telephone or on the Internet. Customers receive a confirmation code, which is traded for a boarding pass at the airport. The concept of ticketless travel originated at Morris Air, a Salt Lake City airline acquired by Southwest in 1993. Although policy and operational differences prevented Southwest from adopting the Morris system, the company was able to accelerate the development of its own system with the assistance of Evan Airline Information Services, a consulting firm that helped to develop Morris Air's system. The first ticketless passenger boarded a Southwest plane only four months after development began.
All Internet activities are concentrated under Kevin Krone, Manager of Marketing