Southwest Airlines Case Study

2057 words - 9 pages

            The southwest airline was started in the year 1918. Initially the service was just seen as a support or supplement to the railway transportation. Then with the changes in the trend several other airlines came into existence and opened the way towards the world transportation. After the completion of the World War II several governments came into forces for establishing the rules and regulations for the airline industry. This helps the industry and also opened several opportunities for the companies. With the increase in the competition price war between the organizations led started and affected the market profitability (Ulla K. Bunz, 1998).
Factors attributed to ...view middle of the document...

Minimum operational cost:
            The company does not offer any meals, assignment of seats and also used the reusable boarding cards which aid the company in reducing its costs. The company also adopted the automated printed tickets instead of the hand written tickets. The company also contracted data processing, maintenance and legal services, which kept the company costs at lower level.
            The company was also highly careful in expansion of its operations in the new markets. The company has the strategy of selecting the markets which matches with its business plans and strategies which are highly underserved and less expensive. The company took time in analyzing the markets and researching about the potential of any market area. After proper evaluation the company initiated its operations in California in the year 1980 and also coast to coast services in the year 1990. The company services more than 65 million passengers in more than 30 states
Effective Marketing and Promotion:
            The company used several marketing and promotion strategies like the use of the brightly colored airplanes which was also one of the factors for its success. The company also initiated the theme “LUV”, the in-flight services of serving drinks and peanuts were called as LUV positions and also LUB bites. The company always tried to project the liveliness of the operations in its services.
The company also operated several promotions schemes and activities during its entire life cycle. The promotions mainly include the free round trips for passengers who made a set of travel with the airlines, cheaper ticket prices etc. These promotional ideas were targeted to pull maximum number of customers who uses the other means of transportation. The company become successful in attracting the customers to a large extent as compared to its competitors (Krajewski, 2012).

Significance of 10 to 15 minutes turnaround time of Southwest’s aircraft
            Southwest airline is an airline which works in the economic sector. The turnaround time is one of the best strategies the company has adopted in its working tenure. This was one of the major areas where the company has performed pretty well in order to maintain the cost of its operations at the lower end. The significance of the turnaround time can be seen from the factors that the more the time is consumed by the airline on land the more the company loses its revenues and also increases its operational costs. The reduction in the turnaround time has led to the increase in the number of trips by the airplanes at different destinations.
            This turnaround time has been achieved by the company by flying to secondary airports with less congestion. This is highly significant for the company in terms of the reduced costs and increased revenues which have been one of the major factor for the company in its success. The uniformity...

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