Southwest Airlines - SOUTHWEST AIRLINES Danielle Rubin Greg...

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Click to edit Master subtitle style 10/5/09 Southwest Airlines Danielle Rubin, Greg Jones, Ashley Westcott, Bernell Nevil
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10/5/09 Introduction The U.S. domestic airline industry is extremely difficult to enter h High operational costs h Difficult to differentiate an individual firm Southwest caters to target customers h Business traveler h Value-conscious traveler
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10/5/09 Difficulties Airlines must: h compete with other forms of travel h deal with high operational costs h differentiate themselves 0 2 4 6 8 10 12 Years Cumulative Loss in Billions
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10/5/09 Southwest Success Frequent and reliable flights Customer loyalty Low Prices h Low prices are reliant on low operational costs
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10/5/09 Operational Efficiencies Internal ticketing Point-to-point route system No baggage transfer Removal of frills
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10/5/09 3 Most Important Efficiencies 1. Operation in smaller airports h Less congestion h Discourage transfer to other airlines h Allow for expansion 2.
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