Saturday, July 14, 2012

How Southwest Airlines opeates in a competitive market.

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How Southwest Airlines operates in a Competitive Market

Southwest Airlines began in 171 with three planes serving three cities in Texas and was founded by businessman Rollin King and lawyer Herb Kelleher. SW Airlines is known for single class, open seating, and having no meals offered during their flights. They emphasize customer service, a sense of fun, and having employee satisfaction.

The mission Statement for Southwest Airlines is The dedication to the highest quality of customer Service delivered with a sense of warmth, friendliness, individual pride, and company spirit. We will address the following questions about Southwest Airlines

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1. How does Southwest position itself as a “different” kind of airline? How does not assigning seats contribute to the Southwest difference?

. How has Southwest used the word “Love” as a promotional tool? What does the word “Love” have to do with the history of the airline?

. What does Southwest mean when it promotes itself as a “Triple crown winner?” How has Southwest used its rewards to advertise itself as different from other airlines?

4. What innovations has Southwest come up with that have both made the airline stand out among it competitors and contributed to the advancement of the commercial airline industry?

Southwest Airlines

How does Southwest position itself as a “different” kind of airline? How does

Not assigning seats contribute to the southwest difference?

More than 0 years ago, Rollin King and Herb Kelleher got together and decided to start a different kind of airline. They began with one simple notion If you get you passengers to their destinations when they want to get there, on time, at the lowest possible fares, and make sure they have a good time doing it, people will fly your airline, and they were right. Southwest is not a nationwide air carrier with 85 percent of its flights under 500 miles. Its success is due to its key values developed by Kelleher and carried out daily bye it’s 5,000 employees. The airlines key values include Humor, altruism, and “luv.” Unlike other airlines southwest does not assign seats or sell tickets this allows the airplane to turn quicker at the gate, in this respect, you can have the plane fly more routes each day. It creates more revenue, thus they can offer lower fares. Because southwest uses on-line ticket selling for their airline it offers the consumer easier access and it is low cost for the company. It cost twice as less to sell their tickets through the Internet then it does going through an agent or travel agencies. Anyone may easily get on-line and purchase tickets for a cheap price and it is also cost efficient for the company.

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How has Southwest used the word “Love” as a promotional tool? What

Does the word “Love” have to doe with the history if the airline?

Love was also incorporated into the airlines every place possible. Love was used in advertising, a red heart was in the logo, and flight attendants served love bites (peanuts).

Southwest even acquired LUV as the airlines symbol on the NYSE. Doing things different from other airlines didnt stop with LUV, for example The famous ten-minute turnaround, Southwests signature, was born out of desperation in 17. Southwest had purchased a fourth aircraft to take charters and also to be used on the regular routes. The first ads, in which the word love appeared up to 18 times, announced, There is someone up there who loves you. The home base of Southwest is, of course, Love Field in Texas.

What does Southwest mean when it promotes itself as a “Triple Crown Winner”

How has southwest used its rewards to advertise itself as different from other airlines?

Winning the industrys Triple Crown for best on-time record; fewest mishandled bags; lowest ratio of customer complaints. Crown for a month - Best On-time Record, Best Baggage Handling, and Fewest Customer Complaints. Since then, theyve won it thirty-one times, as well as five annual Triple Crowns for 1, 1, 14, 15, and 16. They have been an airline whose has led to the advancement of the commercial airline industry. They were the first airline with a frequent flyer program to give credit for the number of trips taken and not the number of miles flown. They have pioneered senior discounts, Fun Fares, Fun Packs, a same-day air freight delivery service, ticketless travel, and many other unique programs.



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What innovations has southwest come up with that have both made the airline

Stand out among its competitors and contributed to the advancement

Of the commercial airline industry?

Southwest was the first airline to establish a home page on the Internet. Initially, five Employees comprised Southwests web site development team, and the site took about nine months to create. Now there are more than 60 fulltime Employees on the airlines interactive marketing team, with about half of them working on the software development team. They also are the first airline with a frequent flyer program to give credit for the number of trips taken and not the number of miles flown. We also pioneered senior discounts, Fun Fares, Fun Packs, a same-day air freight delivery service, ticketless travel, and many other unique programs.

Southwest Airlines has been one of the top ten companies in the United States for quite a while. Their dedication to customer and employee happiness has made them one of the most prestigious organizations today. September 11th was a major set-back for numerous companies, southwest included, creating a need to look towards different ways and interventions to improve the company during this time of airline crisis? They have dealt with the disaster by implementing a new look for their company like their new logo, and techno structural interventions for reorganizing different aspects of the company. They have created the new Vice President of Safety, Security, and Flight Dispatch, used new TQM strategies for employee satisfaction, and is exploring technology upgrades for the check-in process.



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Although the September 11th flights caused some companies to have to shut down I do not see southwest as being one of them. They have already taken steps to ensure the future growth of the company and I believe the future will be bright rather then dismal.



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