Abstract This paper discusses the strengths of SouthwestAirline's marketingstrategy by comparing it to United Airlines, an airline which has had considerably less success than Southwest. The paper also describes Southwest's short-haul, no-frills marketingstrategy, the low-fares and larger number of short-haul departures the company offers, Southwest's carefully planned advertising campaign and high level of employee loyalty. The paper explains how each of these factors contribute to the company's success and suggests that Southwest's principle strength is its president, founder and CEO, Herb Kelleher.
From the Paper "Flying on Southwest Airlines is not the most comfortable way to go. Usually, the planes are jammed full of vacationers and families including children, as well as business travelers. Seats are crammed together. There is no advance seat reservation system. The crowds at the departure gates are usually enormous. Yet, somehow, through it all, Southwest is tremendously successful. In TIME Magazine's issue of May 1, 2000, Southwest continues to be rated No. 1 in on-time arrivals and departures and in overall quality ratings. How does it do better than the large, established airlines? "Economic history shows that an airline based solely on lower airfares does not work...Customer service is the only strategic marketing tool a carrier can use to pull passengers from an established airline." (Donnelly, p. 53) Thus, calling Southwest merely a low-cost carrier would be doing its marketing strategy a disservice."
Abstract This paper addresses the company of SouthwestAirlines in terms of the effectiveness of the company's various strengths and weaknesses. A series of matrixes are used.
Tags: BUSINESS / CASE STUDIES, southwestairlines matrix
Abstract This paper presents a case study of SouthwestAirlines, examining its history, background and current problems. The paper analyzes the case in terms of the rational model, the political model and the cultural model.
From the Paper "According to the report filed with the US Securities and Exchange Commission, Southwest is a major domestic airline that provides predominantly short haul, high-frequency, point-to-point, low-fare service. Southwest was incorporated in Texas. It commenced service with three Boeing aircraft, serving three Texas cities. The airline employs relatively simple fare structure, featuring low unrestricted, unlimited everyday coach fares, as well as even lower fares available on a restricted basis."
Tags: Case study, SouthwestAirlines, Power Model, Enviromonmental model, cultural model, strategic planning model
Abstract In this article the writer notes that SouthwestAirlines is the premiere low cost airline. The writer points out that Southwest operates only in the US market and this restraint that kept it from making unregulated expansion a primary forward strategy is also the strategy that kept it from facing the severe financial difficulties all of the major airlines suffered following 9/11. The writer maintains that in spite of its low cost operating strategy and business model, Southwest has been also negatively impacted by cyclical forces in the airline industry. The writer notes that although Southwest's more recent problems include satisfying employee contract demands and in integrating new executive leadership while trying to manage growth from 500 employees to 35,000, it becomes clear the corporate culture was one more of a cult of personality than any documented and canonized set of operational policies. The writer concludes that operationally, a corporate culture based on the personality of a single charismatic leader, while laudable in many respects, is also difficult if not impossible to reproduce and often leads to human resource concerns as far as impropriety, discrimination and harassment issues.
Outline:
Industry Environment
Financing Sources
Sarbanes Oxley Compliance
Competitive Advantages as Weaknesses
Partnering Exposure
Conclusion
From the Paper "Most major corporations, Southwest included, have at their disposal various financing strategies to fund ongoing operations and extraordinary expenses. In Southwest's case, its various financing strategies are mentioned periodically throughout its Form 10-K most notably in the Management Discussion & Analysis section. These financing options include: cash on hand, short term investments that total more than $2b, a $600m bank revolving line of credit, public debt securities, and various derivative strategies. This degree of leverage, in spite of the cash on hand is still significant and, if Southwest suffers any significant strategic missteps, this leverage can quickly become a negative."
Abstract This paper contains a brief history of both Southwest and United and examines both airlines' marketingstrategies. United, considered the leader of large domestic and international carriers has had problems deciding on which type of passenger to concentrate. The initial goal of Southwest has not changed in that they strive to become the major short-haul carrier and to offer fares below those imposed by the brand-name carriers. These two airlines provide a stark contrast in marketing priorities which are detailed in this paper. This paper also discusses the types of aircrafts both companies use, as well as relevant facts and details pertaining to the airline industry.
From the Paper "All major airlines now offer some form of electronic ticketing. For one thing, there is the convenience to passengers of not having to worry about "losing" a ticket. Information normally available on paper documents is stored electronically. Check-in, security, even customs procedures for travel using an electronic ticket are the same as for passengers with paper tickets. United explains, in its literature, that customers who use United and Air Canada electronic ticketing will have to check in with passport and the ticket receipt and, if booked by telephone, with the credit card used to purchase the ticket."
Abstract This paper discusses the history and growth of SouthwestAirlines Co. (SWA). Specifically, the paper discusses the strategic management of the company and its business plan. The paper provides both an internal and external analysis summary, discussing all aspects of the management, marketing and administration of this growing and profitable company.
Table of Contents:
Introduction
Current Mission, Goals and Strategy Internal Analysis
Management
Marketing Finance
Product
Internal Analysis Summary
External Analysis
Competitive
Economic
Target
Government
External Analysis Summary
Appendix
From the Paper "The most important macro economical factor that affects SWA is the rise of energy costs. This leads to extra costs, reflected in the fare prices. Other cost increases have a similar effect: increases in aviation insurance costs or the new federal ticket tax (introduced with the support of big carriers). Another economical problem worth looking into is the downsizing trend of the aviation industry. This puts pressure on the company stuck between the necessity of cutting costs and the traditional commitment to employees, to good and bad."
Abstract The paper discusses SouthwestAirline's corporate culture that was more of a cult of personality than any documented set of operational policies. The paper looks at the company's tangible and intangible resources, their business level strategy, their strategy of controlling growth and how they recruit with retention in mind. The paper concludes that if Southwest's corporate culture is responsibly shifted to a culture based on a strong understanding of the mission statement, the company can further its growth projections and meet all of the demands of its workforce.
Outline:
Cultural Overview
Strengths
Conclusion
From the Paper "Southwest Airline's corporate culture has traditionally been somewhat freewheeling and capricious and this has long been a strong component of its ability to adjust to the airline industry's rapid market shifts. Much of this culture can be traced to one of the airline's founders and its longtime CEO, until 2001, Mr. Kelleher. When a company CEO is described as, "Mr. Kelleher...drank Wild Turkey at company parties, smoked everywhere -- even behind the podium at shareholder meetings -- and loved to joke with employees and dole out hugs and kisses as greetings..."(Trottman par.8), one becomes aware that a unique and original corporate culture is at play. Yet, in view of Southwest's more recent problems satisfying employee contract demands and in integrating new executive leadership while trying to manage growth from 500 employees to 35,000, it becomes clear this corporate culture was one more of a cult of personality than any documented and canonized set of operational policies."
Abstract The paper shows how Laura Wright, Senior Vice President and CFO at SouthwestAirlines, has impacted the Southwest company significantly through her promotion of the fuel price hedging policy. The paper explains that this policy allowed Southwest to focus on its passengers and support their needs, with fuel prices locked in and fuel hedging contracts with fuel providers in place. The paper reveals that this policy has resulted in Southwest demonstrating consistent profits while other airlines entered bankruptcy.
From the Paper "Laura Wright is Senior Vice President and CFO at Southwest Airlines, with her office based in Dallas, Texas. In this position Wright is responsible for all financial factors affecting the company, with an added focus on "accounting, investor relations, treasury/tax, fleet planning, insurance, and Employee compensation and benefits" ("Officer", 2007, sec. 1). Wright began her association with Southwest in 1990 and has progressively proven her value to the company through such positions as Director of Corporate Taxation, Assistant Treasurer and Vice President Finance and Treasurer ("Officer", 2007, sec. 1)."
This in-depth paper profiles the corporate and business practices of SouthwestAirlines while primarily focusing on the company's approach to business ethics.
Abstract The writer of this paper analyzes the on-going success of SouthwestAirlines which continues to remain a leader in the industry during an era when more and more airlines are facing closure and bankruptcy. This paper delves into the numerous crises faced by SouthwestAirlines which the company has successfully managed to weather. The writer delves into the history of the company which began in 1971 with only three aircrafts while also discussing the company's primary goals and vision. This well-researched paper analyzes the business ethics and corporate structure of Southwest which states that their employees are hardworking, dedicated and highly motivated and a significant contributing factor to the company's overall success. This paper also contains the results of published studies as well as statistics and data relevant to this particular topic.
Table of Contents:
Abstract
Introduction
An Overview of the Business Ethics of SouthwestAirlines How SouthwestAirlines Handles the Various Crises
The Ethical Responsibility of Southwest Today and for the Future
Conclusion
References
From the Paper "Donna Conover, the executive Vice President of Customer services, states that ever since she joined the company, more than twenty eight years back, she had always felt that the employees of the company were the greatest assets for the firm, and perhaps it is because of the policy that the company follows, which is that of never ever dictating pay cuts to its employees, that it has managed to keep all its employees happy and satisfied, and working hard at all times. This was seen in the fact that employees by themselves, during the Gulf War of the 1990's, when fuel costs skyrocketed, voluntarily reduced their pay for some time in order to cope with the escalating costs of fuel. In a similar manner, after the debacle of September 11, Southwest Airlines employees volunteered to take cut costs on their wages, so that the company may be able to cope better with its reductions in flying schedules. This type of loyalty for the company has as yet been unrivalled."
Abstract This paper is about SouthwestAirlines. The paper includes information about the company's internal strengths, internal weaknesses, financial ratios, and a 10 year score card. It provides graphs comparing major competitors and industry revenue and income.
From the Paper "Southwest Airlines Co is a domestic airline that provides predominantly short haul high frequency point-to-point low-fare passenger airline service in the United States. Southwest has a number of internal strengths. One of the most important of these internal strengths is its market position. Southwest is the largest airline in the United States based on total passengers and total passenger miles flown. This market position means that Southwest is the preferred carrier for many passengers. It is sometimes difficult for so-called no-frills airlines to ..."
Abstract The paper responds to a series of questions related to financial reports contained within a company's annual report. Specifically addressed are SouthwestAirline's 2005 Annual Report and the characteristics of its income and balances sheet statements. Also, Southwest's accounting and accounting oversight practices are discussed as are its notes to the financial statements.
From the Paper "Southwest's income statement is a useful document in underlining the overall performance of the company and provides key insight into the operational health of the company. While there are other key financial ratios that can and should be examined, the income statement provides important reference points for operational integrity. For example, Southwest's passenger, freight and other types of operating revenues all increased year on year from 2003 to 2005 moving from $5,937m to $7,584m respectively and, ideally, this increase in revenues should also come accompanied by an increase in profits (Southwest, 2005, p.48). An increase in revenues accompanied by a loss in profits would be indicative of poor operational management or an extraordinary increase in operational expenses related to market forces rather than management."
Abstract This paper provides an overview of the background of the Coca-Cola Company, its' marketingstrategies and positioning through product, price and promotion. The writer considers Coca-Cola's targeting and positioning a key marketingstrategy for the company. Additionally, the paper explains that Coca-Cola's goal is to use the company's assets, financial strength, distribution system and strong commitment of management and employees, to become more competitive and accelerate growth. The paper concludes with recommendations for improvements in Coca-Cola's marketing.
Outline:
Introduction
The Coca-Cola Company's Background
Coca-Cola's MarketingStrategies & Evaluation - Strategy Level
Coca-Cola's MarketingStrategies & Evaluation - Tactical Level
Industry Analysis
SWOT Analysis
Recommendations for Improvements in Marketing Operations and Strategy Conclusion
From the Paper "At the strategy level, Coca-Cola's marketing strategy involves a thorough examination of the company's market segmentation, targeting, and positioning. Overall, Coca-Cola boasts impressive statistics, including 50,000 employees; a total debt of only $7,003.0 million; cash balance of $6,707.0 million; and revenues for 2004 of $22,150.0 million, which has steadily increased since 2001 (Reuters at http://www.investor.reuters.com/business/). Currently, the United States is the company's largest market. However, only 20% of Coca-Cola's operating income comes from the United States, where the company sells over 3 billion unit cases a year to capture 41% of the entire United States soft drink market (Research Reports at http://www.ascensio.com/Reports/CokeClassicCC.aspx). This is an example of the strength of Coca-Cola's market segmentation, because essentially half of the United States soft drink market belongs to Coca-Cola. Even in a developed market such as the United States case sales have grown at 3% per year over the past five years."
Abstract This paper discusses international marketingstrategy and several shortcomings of current strategies. Particularly, standardized approaches to global marketing across markets are examined as being rife with potential cultural hazards. A segmented marketingstrategy is offered as an alternative because it focuses on depth rather than breadth. Nike is utilized as an example of an MNC that is victim of a standardized marketing approach.
From the Paper "When moving from a national to an international market, one of the primary issues in developing a marketing plan and a strategy to execute on the plan is the ability to integrate the cultural characteristics of the target market into the plan. While the need for such consideration might seem self-evident there is still a significant percentage of the business community that enters foreign markets without proper due diligence and the results can prove catastrophic at worst and embarrassing at best. Some debate exists whether market research deserves its own separate business emphasis in marketing strategy: "the topic of business communication requires an independent research agenda about intercultural interaction. Indeed, research has paid little attention to the quality of persuasive documents used in international business..."(Hoeken et al, 2003, para.2). "
Abstract In this article, the writer examines the coffee shop industry in the Untied States. The writer points out that Starbucks is the dominant leader in this industry, followed by regional competitors Diedrich Coffee and the many individually owned and operated coffee shops throughout the metro area and the nation. Starbucks, Dietrich Coffee, and the Coffee Bean and Tea Leaf Company, which has locations both throughout the Western US and internationally, are the three companies included in this marketingstrategy and competitive analysis. The writer demonstrates that Starbucks dominates the U.S. coffee market from a retail perspective and has critical success factors of global growth and supply chain coordination as their most pressing challenges. The writer concludes that the competitive growth strategy of Starbucks centers on the management team's focus on the development and launching of stores, on international growth and on improving innovation and new product development.
Outline:
Introduction
Segmentation Strategies Marketing Mix Analysis
Website Analysis
Market Position Analysis
Micro-environment versus Macro-environment
Customer Relationship Management
Societal Marketing Concept Stages of the Product Life Cycle
Personal Buyer Decision Process
Competitive Analysis of Advertising Efforts
Supply Chain Management Assessment
Sustainable Competitive Advantages
References
From the Paper "Starbucks' segmentation is also globally-focused, as can be seen from the world map shown in the following graphic. Segmenting globally has raised an entirely new set of revenue opportunities for the company, which expects by 2009 to have the majority of its revenue generated outside the United States. Investment analysts tracking Starbucks agree with this assessment. The backlash against globalization from western corporations is a major issue for Starbucks global growth plans, and their approach to highly customizing their stores and hiring only local workers, giving them health insurance, profit sharing, and respecting local customs has helped make globalization successful to this point. There is an abundance of work going on inside Starbucks right now to bring GIS expertise in-house to aid in their segmentation planning based on taking both demographic, psychographic and attitudinal segmentation criteria overlaid against potential market areas."
This paper examines the scope of a specific company, the product, place, prime and promotion that is used as part of a marketingstrategy intended to generate profits in annual sales.
Abstract This paper analyzes the intricate business practices of McDonald's while focusing on the product, place, price and promotion that is used as part of a marketingstrategy to generate hundreds of millions of dollars in annual sales. This paper accurately details various marketing techniques and strategies that have given an ordinary product, such as McDonald's burgers and fries an exciting and evolutionary life as well as impressive profits. This paper also cites various research statistics and results relevant to this particular topic.
Table of Contents:
Abstract
A Look at McDonald's
Product Marketing Place, in Relation to Marketing Pricing
Promotion
Summary
References
From the Paper "If you build a McDonald's in the right area, the people will come, but good pricing surely plays a role in getting them to come back. One of the main elements of McDonald's marketing strategy is effective pricing of their product. Knowing that their target market consists in large part of families, who often need an affordable way to dine out with the children, their menu over the years has been priced in a way that allows virtually anyone to eat at McDonald's and enjoy a quality meal without spending a large amount of money. What it really comes down to is value- people enjoy McDonald's food which is a big part of repeat business; the best pricing in the world will not sell a product if the consumer does not perceive value in what they are purchasing. In fact, McDonald's states this outright in their "Value Menu" offerings of recent years, which provide selected menu items at a bargain price, most times, $1.00 or less."
