case analysis on southwest airlines
Post on 16-Jan-2017
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Case Analysis On Southwest Airlines
COMPANY OVERVIEW
Entered The Aviation Industry In 1971With Little Money
But Lots Of Personality
Has scheduled services to 97 destinations in 40 states and operates more than 3800 flights per day
And maintains a top safety record
BUSINESS MODEL
Based on streamlining its operations
Finding Market Gaps
Enter markets where other airlines overprice and under deserve
And brings fares down by one third to one half
The company has been profitable for 43 consecutive years
PRICING POLICY
Low fares and satisfied customers
Cost Saving Strategy
Operating in secondary cities with smaller airports that have lower gate fees and less congestion
Operating Boeing 737s for all flights
Simplifies and increases operational efficiency resulting in cost saving
Fuel Hedging
This early fuel purchasing strategy has saved the company more than 2 billion dollars
Lighter Planes
MARKETING AND BRANDING
Markets not just a service but also an experience
Central Positioning
Lighthearted attitude with songs and entertaining on-board announcements
POINT OF DIFFERENCE
Constant reminder of the low fare POD of the company through witty commercials
INTERNAL BRANDING
Southwest employees care about each other the same way they care about their customers.
EMPLOYEE RESPECT
In 2004 Southwest closed reservation centers in three cities but did not fire a single employee and paid for their relocation and commuting expenses instead
SUMMARY
DISCLAIMER
Created by Sreedhar Radhakrishnan, PES University Bangalore during a marketing internship by Prof. Sameer Mathur, IIM Lucknow.
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