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Essay / Research Paper Abstract
An 8 page paper discussing some of the pressures facing Southwest Airlines in 2005 and steps it could reasonably take to mitigate its business risks. Southwest still can claim no layoffs and no unprofitable quarters for all of its history, but most of the legacy carriers it competes with are operating under bankruptcy protection and at much lower costs. The paper recommends that Southwest preserve its all-important culture at all costs; increase fares; and expand into easily accessible markets as it waits for competitors to emerge from Chapter 11 protection and again come into the sights of the labor unions currently giving many deep concessions. Bibliography lists 7 sources.
Page Count:
8 pages (~225 words per page)
File: CC6_KSairSWAprom.rtf
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Unformatted sample text from the term paper:
1971 in response to deregulation of the airline industry, Southwest Airlines struggled with competitors in the early years but won many loyal customers in the process. It consistently retains
the leadership position in its industry in passenger boardings, and it is one of the nations most admired companies. Never having suffered a losing quarter while its competitors bled
cash, Southwest appeared for a long while to be unstoppable. Its operation and commitment to fiscal efficiency remain strong, but competitors ability to operate under bankruptcy protection has created
an artificial competition that severely limits Southwests choices for its own future. Promotion is likely to become more important to Southwests continued success than it has been in the
past. The Marketing Mix Promotion Though Southwest Airlines holds competitive advantage in virtually every other respect, it has never given great attention to
promotion. Instead, it has chosen the route of letting the product, service and employee attitude collectively provide promotional influences. In the past, there was rarely a "fare sale"
to be found at Southwest. Now, such sales are common as the airline seeks to continue increasing market share. As example, the airline currently is promoting a system-wide
sale in which passengers can fly "for $39 to $149 one-way with 14-day advance purchase" (Southwest.com, 2005). Southwest is indeed beginning to look
more like the former "gang of seven" than the upstart renegade that the "gang of seven" tried to destroy (Gimbel, 2005). It currently offers a loyalty program; air, car,
and hotel specials; offers of double miles; and now a gift card (Southwest.com, 2005). Its competitors have been doing these things for years and are much more accomplished in
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