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