Southwest Airlines Case Study

Case Study
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Southwest Airlines Case Study Table of Contents Executive Summary 3 Action Required 3 Reason 3 State objectives 3 Market Research 4 Market Segmentation 4 Price 5 Promotion 5 Product 5 Cost 6 Income 6 Reference 6 Executive Summary Action Required The increasing competition in U.S.


Some actions required for Southwest Airline during that period were decreasing income, market share, intensifying competition, and degrading operational effectiveness. Reason In 1978, after deregulation of Airline industry in U.S. the entire airline industry become too competitive as many of the privet companies tried to grab the market share by expanding their coverage and by reducing the service price significantly. In the mean time, Shuttle by United becomes the biggest threat for Southwest Airlines. In fact, Shuttle by United competed with Southwest Airline by matching the latter’s price and services. However, suddenly United BY Shuttle decided to incorporate two major changes that left the management of Southwest airline in state of confusion. Firstly, it discontinued its services from the most wanted markets i.e. California, Oakland-Ontario. Secondly, it also increased first class coach fare by $10. State objectives To respond against intensifying competitive forces specifically, rivalry among the market players likes Shuttle by United. To increase the revenue through an effective promotional and pricing strategies To expand the services coverage in the most profitable market areas. To enhance the operational performance in comparison to market leaders. Market Research After the deregulation U.S. ...
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