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Essay / Research Paper Abstract
This 4-page paper discusses two alternative strategies to support Southwest Airlines' growth. Bibliography lists 3 sources.
Page Count:
4 pages (~225 words per page)
File: AS43_MTstragswa.rtf
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Unformatted sample text from the term paper:
Southwest Airlines. Launched in 1971 in Texas as an alternative to driving throughout the huge Lone Star State, SWA these days is among the leading U.S. airlines, having enjoyed close
to 40 straight profitable years, despite the ups and downs in the overall industry (Gilmer, 2010). In many cases, SWA has been the poster child of how to run an
airline successfully. Rather than working through a hub-and-spoke system like its competition, Southwest is a short-haul point-to-point carrier that flies into either city airports or airports on the outskirts of
town. For example, people flying into Boston would instead fly into Warwick, RI, thus avoiding the congestion and delays of Logan Airport in Boston. Then these fliers would take transportation
to Boston (about an hours drive). The company, much like its competition, has been hit by the economic meltdown of 2008, though its
implementation of its "bags fly free" program (which flies in direct contrast to competitors that are charging for checked bags) has allowed the company to gain a 12% revenue growth
during Q1 2010 (Alukos, 2010). However, SWA operates in a very volatile industry that has, to an extent, low barriers to entry (other than capital expenditures and regulations) (Alukos, 2010).
Since the deregulation of the U.S. airline industry in the late 1970s, there have been a number of air carriers that have come and gone. Southwest has managed to survive
the rise and fall of competition with its dedication to a price differential strategy, a well-trained staff and dedication to customer service.
However, changes keep happening in the airline industry that are going to impact SWA (Alukos, 2010). One of these involves increasing fuel prices; though SWA worked through a fuel hedge,
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