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Analyse - Case Study Example

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The business was formally incorporated in 1967 with Herb Kelleher as a shareholder. The business was established to offer reliable,…
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Case analyse
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Together with funds from private investors, and the IPO, the company managed to raise lose to seven million USD, funds that were used to purchase aircraft, equipment, and start-up capital. The company hired several relented senior staff most of who were veteran executives from other airlines. The company’s first flight went through successfully.
As of mid 2001, the company had a fleet of about 350 planes plying across 58 airports in the U.S., and boasted of enjoying a turnover of about 5.5 billion USD annually (Thompson & Gamble, 2011, p.281). The company used different strategies to grow and in 2010, the company emerged the share leader of US domestic air travel (1). The company transported more passengers to various destinations in the United States than any other airline in 2010. Furthermore, the company boasted of offering the most reliable schedule and made profits consistently over the years unlike many of its counterparts.
The Southwest Airlines has applied several strategies to see its success in the competitive market environment. Some of its strategies included providing hostesses with attractive clothing, offering free drinks to passengers, using an attractive tagline, and increasing its operational capacity without having to buy more planes initially. The company also realised its main market segments (business travellers and price sensitive leisure travellers) and maintained lower turnaround times compared to its competitors (Thompson & Gamble, 2011, p.279). Yet again, the company applied a different pricing strategy by incorporating different fare prices for the on-peak and off-peak periods. Essentially, the airline pursued a strategy that revolved around low cost, no frills and low prices (Thompson & Gamble, 2011, p.285). The company presented a customer care service that was dedicated to customer satisfaction with a fun loving attitude and happy face.
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