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Essay / Research Paper Abstract
A 3 page paper discussing the "place" component of Southwest's marketing mix. Currently, Southwest retains its competitive advantage in "place," but it is experiencing increasing difficulty as it competes against the legacy carriers that with bankruptcy protection have made deep cost cuts and have secured impressive concessions from labor unions. The result for Southwest is that its costs are much higher than its competitors. Though it still leads its industry in all respects, those competitors are closing the gap. Bibliography lists 3 sources.
Page Count:
3 pages (~225 words per page)
File: CC6_KSairSWAplace.rtf
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Unformatted sample text from the term paper:
34 years of operation, Southwest Airlines still has never laid off an employee and still has never experienced an unprofitable quarter. Maintaining its record for profitability becomes more difficult
each year, particularly as legacy carriers enter Chapter 11 bankruptcy protection. Though the travel industry appears to be fully recovered from the slowdown created within it in response to
the terrorist attacks of September 11, 2001, the pressures of fuel and labor costs are staggering. Co-founder and long-time CEO Herb Kelleher devoted
much of his time and energy as CEO to fighting off what he referred to as the "gang of seven," the legacy carriers that for years focused more on driving
Southwest out of business than they did improving their own companies. Most of those that still exist - several no longer do - operate under bankruptcy protection and have
gained impressive labor union concessions while implementing the sound management practices they should have been using during the years they were attacking Southwest. The irony for Southwest is that
though it has been able to compete against the remnants of the "gang of seven" quite effectively over the years, it is experiencing difficulty competing within conditions as they currently
exist. Southwests "Place" Component of the Marketing Mix Southwest still is listed in the regional airline industry according to the Standard Industrial Classification
(SIC) Code used to classify all businesses. "The first two digits in the code define a major business sector; the last two digits denote a facilitys specialty within the
major sector" (Enforcement & Compliance History, 2005). Southwest was assigned to its particular SIC category years ago and that assignment tends to be permanent. Industry classification does not
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