Southwest Airline
Essay by jasonl04 • October 30, 2012 • Case Study • 283 Words (2 Pages) • 811 Views
Southwest Airlines
* Describe the competitive environment faced by Southwest Airlines.
o Operation delayed 4 years due to court battles due to new carrier's entrance
o Limited demand
o Faced Predatory pricing from competitor
o Faces deregulation & expansion beyond texas
o Compete with not only flights but also car drivers (short flights)
o uncongested airports of small cities or smaller, less congested airport of large cities (avoid competition + differenciation)
o shortest time require to "turn"
o cost effective is critical !
o high service at low cost
* What are the distinctive resources and capabilities that provide Southwest Airlines with its competitive advantage?
o Love themes, differentiates themselves from other airlines
o Frequent flights, low unrestricted fares, on-time departures
o Drive vs fly
o Does not offer reassigned seats, meal (only drinks+snacks), membership to cut cost (more margin on price)
o Domestic flight
o Short-haul, high-frequency, low-cost
o Focus on service operations, cost control, marketing, its people and the corporate culture
o Big family with employee and customers (have fun with them)
o Hire people base on cultural fit (fun, friendly from heart)
o Foster good relationship between employees and passengers
o 55% book through travel agent / 90% average industry -> more profit
o ticket revolution welcoming guess > reading ticket
o focus on nonstop flghts
o uncongested airports of small cities or smaller, less congested airport of large cities
o "excellent"
...
...