Southwest Airlines Case

Case: southwestern Airlines 1.Although southwest is smaller than some of the study piece of cakelines, it is pursuing a market sh atomic number 18 leadership strategy. The fashion model in the case of its success in the Oakland market versus US Airways indicates that even though it may non be the biggest boilers suit airline, it tries to dominate any particular market it enters through its humbled-price strategy. thence even though it is entering the Philadelphia market with only 14 flights per day, US Airways should expect it to expand its number of flights quickly if it is productive in getting a start in the market. Southwest is not pursuing a current profit maximation strategy, even though it has been highly profitable. Low prices do not necessarily result in economic crisiser profits. In station to deliver low prices, Southwest must keep the bell of the other variables low. Thus, it offers a no-frills, point-to-point, air transportation service (product) at out-of-the-way airports (places) where equals are low, with limited and low-cost promotion. terms is the only marketing merge variable that produces revenue, so with low prices the company must keep the cost of the other variables low. Southwest has done an excellent job of getting the marketing mix variables to fit with each other. 2.

Salaries of the pilots, flight attendants, ground crews, goal personnel, reservations systems personnel, and corporate employees are all fixed. The costs of the planes, the gates at the airports, terminal fees, etc., are also fixed. The only variable costs are the transaction costs of issuing a ticket (very low with e-tickets), the extra fuel the plane uses because of the extra weight of the rider and luggage, and any in-flight food or beverages. The true variable cost of flying one additional passenger is very low. So, air transportation is a very high fixed-cost business. In such(prenominal) a business, volume is important. The building block price minus unit variable cost (unit contribution) is high. An airline must have a high... If you want to get a full essay, order it on our website: Ordercustompaper.com

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