With 18 U. As a result, customer retention is more critical to staying in the air than ever before. In an industry this competitive, how do airlines keep customers coming back, flight after flight? Dallas-based carrier Southwest Airlines seems to have found the answer. Known for their affordable fares and excellent customer service, Southwest is setting the stage for customer loyalty with their Rapid Rewards loyalty program. While this program has a number of exceptional features it also has some areas to improve.
Southwest Airlines Case Study
Southwest Airlines Strategic Analysis | Case Study Template
This case is accompanied by a Video Short that can be shown in class or included in a digital coursepack. Instructors should consider the timing of making the video available to students, as it may reveal key case details. Southwest Airlines, a small intrastate carrier serving Dallas, Houston and San Antonio, begins service in in the face of competition by two larger, entrenched airlines. Improved quality service, lower prices, and innovative advertising and promotional strategy bring Southwest to the brink of profitability in early , when its major competitor halves fares on Southwest's major route. Management wonders what response to make.
Case Study Analysis: Southwest Airlines
After more than 45 years of service, the company was facing some major challenges. Smaller companies like JetBlue and Allegiant were pressuring Southwest's cost-advantage and low-fare focus. A major internal challenge for Southwest would be managing its acquisition of AirTran. To make the acquisition a success, the company would have to integrate a workforce of more than 8, and new markets that included non-U. In addition, high fuel prices were a continuing challenge, and Southwest's salaries were among the highest in the industry.
Their success comes from many different sources within the company. Southwest , on the other hand, has put an increased focus on their customers. This Case Study Analysis will attempt to take an objective look at the key issues and underlying implications of Southwest Airlines with respect to its impact on the airline industry. It will offer meaningful recommendations and plans for implementation. Case Study 1 — Southwest Airlines 1.