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Case Study On Southwest Airlines


             (B) GOAL/OBJECTIVES.
              To have customers total confidence in our airline and employees.
              To gain loyal customers by offering low cost airfares.
              Concentrate on flying large number of passengers on high frequency, short hops.
              Commitment to its employees and customers.
              Market more effectively.
              Reach a new potential franchisee audience.
              Improve customer communication and feedback.
              24-hour emergency medical service available to its in-flight customers.
              Increase information systems in the area of revenue management.
              To have good relationships with quality travel partners to ensure seats are actually available.
              To provide affordable infant fares for children under two years of age.
              To have a family environment for the employees.
              To offer employees company stock options.
             III. INDUSTRY ENVIROMENT.
             (A) RIVARLY AMONG COMPETIVE FIRMS.
             Although Southwest Airlines is the industry leader in airline transportation, many competitors exist. Some of Southwest Airlines top competitors are American Airlines, Delta Airlines, and United Airlines. Low-cost, low fare airlines are increasing the level of competition in commercial aviation considerably and will continue to accelerate rivalry between the airlines. Low-fare adjunct carriers, organized under special labor agreements, and design to compete with low-fare services like those of regional carriers and other new entrant carriers. The development of affiliated low-fare carriers has been the most significant structural change in the U.S. major airlines since the 1980's, when major airlines began establishing links with commuter and regional carriers. New 50-seat jet aircraft that rival large transports in comfort and speed have also created opportunities for regional and commuter airlines by giving them the ability to serve markets up to 1000 miles or more from airport hubs21.


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