Case Study Of Southwest Airlines:

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CASE STUDY OF SOUTHWEST AIRLINES: The Airline Industry The competitive environment in which Southwest operates can be subdivided into different value-added stages, customer and service segments, and competitor groups. Airlines engage in several value-adding activities. These include aircraft procurement, aircraft maintenance, reservation systems, schedule and route planning, in-flight services, and after-flight services. Competitors may differ in their involvement in these activities. For example, Southwest performs some in-house maintenance but offers no post-flight services. By contrast, American Airlines owns and markets its own reservation system, and Allegis, as United Airlines was known briefly in 1987, at one time operated a car rental agency (Hertz) and two hotel chains (Hilton and Westin). Airlines compete for three primary types of customers: travel agents, corporate travel managers, and individual travelers. The two major categories of passengers are leisure travelers, who tend to be quite price-sensitive, and business travelers, who are more concerned with convenience. To satisfy the different needs of some or all of these groups, airlines present a wide variety of services, depending on their strategy. Southwest Airlines’ Mission and Objectives Southwest Airlines' mission focuses to an unusually large degree on customer service and employee commitment. According to its annual report, the mission of Southwest Airlines is "dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit." Indeed, Southwest proudly proclaims, "We are a company of People, not planes. That is what distinguishes us from other airlines and other companies." In many respects, the vision that separates Southwest from many of its competitors is the degree to which it is defined by a unique

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