Do you know that air travel is considered the safest form of transportation compared to driving or taking a train? The airline industry expects to see a “31% rise in passenger demand for 2017” per the International Air Transport Association. Middle East and Asia will see the strongest growth between 6.3% and 5.7% and Africa and Latin American will see a 5.3% and 4.5% growth rate. The United States; however, will continue to be the “largest single market for domestic passengers.” (IATA, 2013)…
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 Airline’s strategy is a benchmark throughout the airline industry, being the largest discount career and the second largest domestic career. It all started in the beginning with Herb Kelleher and the then crazy idea to put employees above everything. Southwest employees work together, feel more job security, and feel like the company actually cares about them. By taking care of their employees, their employees feel like they are a part of something bigger. This has lead to higher…
valuable customers. Southwest was established in 1967 by Rolling King and Herb Kelleher as an intrastate airline. It is now the fourth largest major airliner in USA and is trading on the New York Stock Exchange. The organization religiously reminded themselves that "airplanes don't make money on the ground." Flights have to be maximised with the least number of fleets to profit. They even researched a NASCAR pit crew to gather the best turn-around strategy. Above all, Southwest banked on its…
The Airline industry is characterized by strategic management and competitiveness. The paper seeks to provide information concerning the impacts of the changes in technology and globalization on the airline industry. Furthermore, the paper would also integrate the resource based model and the industrial organization model to try and determine the above average returns witnessed in the Airline industry. The paper seeks to analyze a case involving the Southwest Airlines. The globalization process…
Southwest Airline Background Southwest Airlines is the largest low-cost, commuter airline measured by number of passengers carried each year within the United States. Southwest Airlines is known as a “discount airline” compared with its large rivals. In late 1966, Rollin King, a San Antonio entrepreneur who owned a small commuter air service, came to see Herb Kelleher at the latter’s law office with a plan to start a low-cost, low-fare airline that would shuttle passengers between San-Antonio,…
it, people will fly your airline” (Southwest Airlines History, n.d., para. 1) stated King and Kelleher, the starters and Presidents of the airline. Using its low-cost, no checked baggage fees, great customer service, and point-to-point strategy, which allows them to pick the most profitable routes to operate, Southwest has been able to expand year after year and stay profitable. As of today, Southwest Airlines is one of the most successful airlines in the struggling airlines economy. Over the…
In over 40 years of dedicated service, Southwest Airlines which is a Dallas, Texas based company sustain its image as the best of the rest with ideal customer service by an abundance of workers to over millions of customers on a yearly basis. Southwest Airlines has around 4,000 flights taking off on a daily basis amongst a system of almost 100 locations within the United States and numerous locations throughout the world. Importantly, Southwest Airlines established a connection to Long Beach,…
Current Situation The airline industry is an intense and highly competitive market. Everyday millions of consumers travel and each airline both national and international compete for sales revenue, in fact, each airline has developed and evolved to sustain in this volatile industry. For Southwest Airline to capitalize in this market and steadily maintain their sales, they have procured a niche market. The company has positioned itself as a low fare cost leader in air transportation service. On…
component used to implement strategic change (p. 296). Organizational culture describes the shared beliefs, values, and practices among the employees at an organization (p. 295). According to Quick (1992), Southwest Airlines’ corporate values are humor, selflessness, and luv (p. 47). Southwest Airlines’ website (n.d.) states that safety, warrior spirit, dependability, friendliness, and low costs are also held in high esteem (para. 4). Parnell (2014) defines corporate strategy as the…