A business must choose an efficient strategy in order to thrive in the present and in the future and it is “important to explore several strategic options, investigating each one carefully before making strategic choices” (Mahdi et al., 2015,) Looking at two organizations, Southwest Airlines and Delta Airlines are analyzed by looking at the external environment in which influences the company. The airline industry is a hyper-competitive industry and not all airlines are having fruitful finical performances due to some...
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In 2018, Southwest returned more than $2.3 billion to shareholders through the repurchase of $2.0 billion in common stock and the payment of $332 million in dividends. From its first flights on June 18, 1971, Southwest Airlines launched an era of unprecedented affordability in air travel described by the U.S. Department of Transportation as 'The Southwest Effect,' a lowering of fares and increase in passenger traffic wherever the carrier serves. With 46 consecutive years of profitability, Southwest is one of...
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External Environment Southwest Airlines is one of the leading low-cost airlines in the United States. Southwest Airlines praises itself as being an airline that is dedicated to providing the best customer service, that is delivered with kindness, and friendliness, and displays their company pride to each of their customers (southwest.com). This case study analysis will take a look into the external and internal environment of Southwest Airlines, along with the various factors that they face in their business on a...
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1. Introduction Due to the fluctuating demand and uncertainty in oil prices, the profitability of the airline industry was far outpaced by other industries such as banks and healthcare (Inkpen, 2013). Southwest Airlines Co., the largest low-cost carrier in the world, has developed a new business model with a low-cost strategy which helps the company to achieve 46 consecutive years of profitability in the tough industry environment (Southwest Airlines Co., 2019). Although the low-cost strategy plays an essential role in...
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Introduction to Southwest Airlines' Historical Background A quick situational analysis of Southwest Airlines would begin with their history or background of their organization and their successes and failures. Southwest actually started their company in the maintenance sector of planes and by 1971 Southwest attained its first three airplanes. Southwest only had three destinations they flew between and they were Houston Texas, Dallas Texas, and San Antonio Texas. It’s wort pointing out they started only in the state of Texas because...
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INTRODUCTION There are some basic concepts of marketing which are key for any organization to succeed in the business world or environment and those basic concepts can be classified into the 4 marketing P’s, which are Product, Price, Place and Promotion. Southwest Airline is a great business example who utilizes the 4 marketing P’s to great effect in growing the company’s customer base, profit, and business while facing intense competitions from other Airline carriers. Furthermore, in a highly competitive service...
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The success of Southwest Airlines is no secret in the flying industry. Southwest Airlines is a brand notorious for its affordable prices, non-stop flights, and online ease of use. Beyond that, what makes Southwest success so strong? The company has taken nearly every precaution to rid excess use of valuable funds. These precautions include but are not limited to, using the same aircraft inside the company, non-stop flights, and short and sweet services inside their flights. The company uses only...
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Introduction Southwest Airlines is a major American based airline headquartered in Dallas, Texas. It started out as a low-cost airline which has seen tremendous success year after year. Since its establishment as Southwest Airlines by Herb Kelleher Rollin King in 1967, the company has survived many ups and downs, including a recession and every airline industry downturn without having to layoff a single employee. SWA has stayed and is here to stay in the coming years, but in order to...
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This case analysis explains how Southwest Airlines Company culture and intellectual assets adapt, changes and grows as the environment of the airline industry changes. Southwest Airlines Co. was established on March 15, 1967, by Herb Kelleher. The company was originally named Air Southwest Co. but was changed in 1971. According to the Southwest Airline Co website their culture purpose and vision is to provide a friendly, reliable and low-cost travel while becoming the World’s most loved, flown and profitable airline....
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