BUAD441 Chapter Notes - Chapter 284-319: Southwest Airlines, Bargaining Power, Cartrain
25 Oct 2016
School
Department
Course
Professor
Document Summary
Target travelers: overall low-cost leadership strategy: convenience, time-oriented travelers, price sensitive leisure travelers. Growth strategy: add more daily flights to cities and airports it served, add new cities and airports to its route schedule. Sw culture: work hard, desire to be best, fun-luving attitude, put others first, pay for pilots in 2013 31-92% higher than avg pay for other airlines, for flight attendants 12-38% higher not very high. Weaknesses: heavy dependence on passenger revenues, single producer boeing weak product breadth, limited to domestic cities, operates own booking service, doesn"t offer segmentation (business flights, first class) Opportunities: international expansion, new technology, continue to develop its low-cost position in the airline industry, merger or acquisition. Threats: intense competition, cost of operations may increase anti-weapon systems & aircraft security, regulation restrictions, price fluctuations in petroleum markets, terrorist attacks, bad weather, economic downturns. Competitors: delta airlines, american airlines, united airlines, us airways.
