Southwest has already seen this new rewards plan pay off by meeting and passing

Southwest has already seen this new rewards plan pay

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partnerships within its various divisions. Southwest has already seen this new rewards plan pay off by meeting and passing all of their expected growth goals. They’ve increased their overall business and given customers what they want. This company excels at being attuned to customer needs - they know that if you give people what they want, they will give you what you want. (iv) Future-minded: The fourth key strategy is Southwest’s focus on its future. Everything it does progresses the company, and every decision is made with long-term benefits in mind. Their recent acquisition of AirTran shows how Southwest is thinking of ways to expand its services and grow its market share. In their Annual Report, Southwest listed the strengths of this integration. “It allows...more low-fare destinations by and diversifying into new markets .... ” It also “...increases Company’s share of current domestic market share capacity (as measured by available seat miles or
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Sensitivity: Internal passengers.” And “it provides access to near-international leisure markets in the Caribbean and Mexico...and provides firsthand and meaningful insight expansion opportunities.” Essentially, Southwest is working to expand its services, steadily increase its market share, absorb prior competition, and prepare for future growth. These steps will help the company be successful both now and in the future. In the current economy, companies must be more flexible and prepared than ever before, so plans like Southwest’s are essential. In line with their future-minded goals, Southwest is updating its aircraft fleet to lower costs and increase customer capacities. The company purchased new Boeing 737-800s in the first quarter of 2012. These planes have increased their customer capacity - and more customers of course means access to more profits. Although adding customers means more money, it can also mean more costs. Southwest has prepared for this; 737-800s have better fuel efficiencies than previous models and can reduce unit costs. The planes are also larger, so Southwest can add seats without adding flights. This increased efficiency will help cover fuel costs and contribute to the company’s operating margins. In addition to these new planes, Southwest has made a deal with Boeing to purchase 150 of their newly designed 737 MAX planes. These new models are more fuel efficient and environmentally friendly. These benefits factor into both Southwest’s low-cost and customer-minded strategies. Fuel efficiencies cut costs, and environmental considerations are essential to stay on the public’s good side. A green company is much more respected than its less environmental competitors. The competitive advantages of southwest are …. Southwest Airlines (LUV) has become known over the past two decades as a thriving airline company operating in a time when most airlines have been struggling. Whether it is due to fluctuating demand based on the luxury service or due to rising oil prices, a company operating in the airline
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  • Summer '16
  • Southwest Airlines Company, STRATEGIC MARKETING case study

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