Southwest Case Analysis

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Southwest Case
Southwest airline is one of the major U.S. low-cost airlines in the United States. It was founded in 1966 from an idea of Rolling King a San Antonio entrepreneur who owned small commuter air service. The original plan was fairly simple attract passenger by offering convenient schedules, getting on time to their destination while having a good experience, all these while trying to charge the most competitive prices. Over the course of the years Southwest had to fight really hard in order to establish itself in the market because of fierce competition. In order to compete with other big airline, Southwest introduced important and revolutionary concept that have deeply affected the airlines world until now a days.
Just to mention a few: taking cue from its hub at Dallas Love Field they started the so called “Love campaign” (Southwest’s airplanes were Love Birds, it’s drinks Love potion etc) this set the tone for Southwest’s approach to its customers to make flying with Southwest an enjoyable and fun experience.
The company decided strategically to move from big, expensive Intercontinental Airports to smaller and closer to downtown airports.
They also reduced to 10 minutes the turnaround time (the time spent refueling, off-loading passengers and bags and cleaning up the airplane in order to be ready for the next flight).
Southwest was also the first to differentiate among its consumers. They offered generally low fares but in certain time and on certain days it was possible to get even more discounted tickets.
Anyway a few problems are threatening the over 30 year successful low cost airline, increase in fuel and labor cost combined with a stiff competition might undermine the future of this company but in any case let’s take a look to all the different and relevant aspects .
Question 1
I believe that Southwest winning strategy is in its capacity…...

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