Southwest Airlines Business Strategy Analysis
Added on 2020-05-16
6 Pages1430 Words386 Views
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Running Head: MARKETING MANAGEMENT 1Marketing Management Case Study:Southwest Airlines 2011
MARKETING MANAGEMENT 2Table of ContentsAnswer 1:.........................................................................................................................................3Answer 2:.........................................................................................................................................4Answer 3:.........................................................................................................................................4Answer 4:.........................................................................................................................................4Answer 5:.........................................................................................................................................5Answer 6:.........................................................................................................................................5References........................................................................................................................................6
MARKETING MANAGEMENT 3Answer 1: Airline Industry has always been an industry of interest to many business people, professionalsand academics because of economic effect of the industry. The attractiveness of US airlineindustry can be analyzed by using some of Porter’s forces; Threat of New Entrants In United States airline industry, entry barriers were softening pre 9/11 due to governmentderegulation laws and policies. Low cost carriers were able to distinguish their services throughtheir pricing strategy. Bargaining Power of Suppliers It was possible to overcome the supplier’s power by using the cheaper airports and reducing thecharges for landing space. Industry RivalryPrior to 9/11, the rivalry among airline industry was intense because all the players arecompeting for similar customer base and it has reduced the attractiveness of US airline industry(Hannigan, Hamilton & Mudambi, 2015). 9/11 terrorist attack has been a major shock for the US Airline Industry and this event had a largeimpact on internal and external environment of this industry. After this attack, the industry haslost approximately $30 billion. It is the fact that this event has rebuilt the operating environmentof the sector. Political environment has also changed post this terrorism attack. However, domestic airline industry in US has experienced increasing operating income, but it isstill less cost effective and profitable than other industries in country. The industry is facingservice problems, which need to implement some new regulations of competitive practices ofairlines. In this country, travelers were frustrated because of more offensive security processes(Cameron, 2017). The costs of fuel were also uncertain and new entrants put the pressure onexecutives. These factors indicate that attractiveness of US airline industry is moderate. There is
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