South West Airlines - a Different World

Submitted by - James Skyes & Chandran VE Southwest Airlines: In a Different World Background After Southwest Airlines entered the airline industry in 1967, it soon became a market leader by engage a broken in cost differentiation strategy. This strategy eitherowed them to signal 60% lower than the average coach fair and get down a consumer base around their excellent service. There argon three primary reasons to why this strategy was successful in the past. First, the community demanded process efficiency, second, the order developed a bum almost inimitable culture of outstanding service and finally, the company successfully engaged in fuel hedging. Early in the companys existence, the Southwest Airlines saw the automobile as its primary competitor and not the other airlines in the industry. Their finis was to charge fares that were below the cost of driving an automobile. This goal drive them to be cost efficient and demanded maximum utilization of their assets. unity primary way they change magnitude their efficiency was by development the point to point system rather than the hub to spoke system. This oftentimes meant flying into airports where few carriers were located.

The benefit of this system was that there was low congestion at these low populated airports and thus the company could have a quick turn over for its planes. They provided made this model more efficient by endeavour to make these point to point flights 90 minutes or less.  Quick and maximized flight times meant higher revenues for the company. Southwest increased their efficiency by processing their customers through the airport faster. They did this by not taking any seating reservations. During the boarding process, all customers would board the plane at the same time. Southwest sped up efficiency on the ground by having only whizz type of plane, the Boeing 737. This take to the standardization of their cleaning and prepping processes. In addition, this led to standardization in a typical pilot routine, which... If you requisite to get a full essay, order it on our website: Orderessay

If you want to get a full essay, wisit our page: write my essay .