Southwest Airlines Essay

702 words - 3 pages

1. This article was an overview and summary of this economy airline carrier, Southwest Airlines. From modest beginning, and man who would be a celebrated CEO, this corporation is now a major competitor in this most lucrative transportation market.2. STRENGTHS: a vibrant founder/CEO with a sense for conversation in growth and reinvestment of resources for internal improvement; low cost airfare; great frequency and reliability of service between destinations.WEAKNESSES: initially the underdog in the airline world, without reputation; limited capital and resources to cover as many airports; relatively small fleet.OPPORTUNITIES: not tied to the conventional practice of hub-based airport system, allowing for greater flexibility to customers; continue with fun and fresh image; societal shift to fly more often THREATS: rival airlines create economy programs that compete with Southwest Airlines premise of low-cost rates (such as Shuttle by United); the inherently turbulent nature of the travel industry and the economy as a whole.ENVIRONMENTAL SCAN: Amidst ever-fluctuating fares and increased alliances and affiliations, there can be seen numerous developments in the airline industry designed to compliment the trends of a more mobile and connected culture.SOCIAL: generation "X" has left college and is in the job market earning their own incomes, accommodating the growing tendency to travel; retired baby-boomers traveling also ECONOMIC: increase per capita income; marginally healthy economy (and interest rates); increasing automotive fuel prices world-wide TECHNOLOGICAL: aviation fuel more economical now more than ever because of improved methods of mixing; desire for en-route compatibility with high tech business equipment on flights COMPETITIVE: stable union/corporate relations currently; economy air fares compete quite well with cost of land travel (especially when "Time is money") REGULATORY: increasing freedom for international travel; increased FAA monitoring; currently no one dominate airline 4. RELATIONSHIP MARKETING / CUSTOMER VALUE The underlying success of Southwest Airlines' marketing strategy is relationship marketing with their customers. As is often mentioned of Herb Kelleher, he prioritized the ideals of fun and affordability throughout the...

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