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Example research essay topic: Weighted Score Los Angeles - 1,138 words

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... id western, Southwestern, and Western United States. The airline specializes in short-haul routes and targets business commuters. The company's most-traveled routes are intrastate flights in California and Texas.

Its fleet consists of about 310 Boeing 737 s. Passenger transportation generates almost all revenue, accounting for more than 96 % of the total. In fiscal 1999, Southwest's average aircraft trip was 465 Southwest has managed to steer clear of nearly all the woes that afflict its competitors. Over the past few years, the Dallas-based carrier has done a much better job of protecting itself against high fuel costs and labor disputes than industry rivals. It has avoided being associated with airport gridlock in the minds of travelers because, in many regions, it flies in and out of smaller, less congested airports, such as Love Field. Instead, it appears to be ignoring the consolidation wave while staying on course by serving smaller regional airports where congestion has not reached epidemic proportions.

Corporate Culture The culture of this company is what helps make it a wonderful place to work for. The leaders of this company have tried their best to develop a place where everyone loves to come to work and wants to work. Managers who do not follow this theory are stuck with employees who just come to get as little done and still get paid. It's a company that not only nurtures nuttiness but also makes its pleasure a requirement for employment.

And it's a company unique culture, which includes a order that people have fun at work which are part of Southwest, which set itself on low fares and low frills, serving peanuts instead of meals. Employees also are constantly reminded that they are No. 1 in the company's eyes. The reminders include cards, notes, gifts, celebrations - and profit sharing to motivate them that there are our children In fact they believe: Yes, Southwest its a good home EDI Although, southwest where a new company in the it manages to turnover from browsers to buyers. The company gave grate attention to the construction of the site presenting the major advantages of electronic booking (no seat, payment in the plane, competitive prices, receive the ticket on board, ), the site was giving real time examples for price sensitivity and time orientation strategy. SWOT~EFE, IFE Internal Strengths WEIGHT RATING WEIGHTED SCORE 10 minutes turnaround 0. 15 4 0. 60 Only 737 0. 10 3 0. 30 Point-to-point 0. 20 4 0. 80 Loyal Employees 0. 20 4 0. 80 Not congested airports 0. 20 4 0. 80 Low operating Costs 0. 15 4 0. 60 TOTAL 1. 00 3. 90 Internal Weakness WEIGHT RATING WEIGHTED SCORE Try to convince customers that what the airline offers it a real value to them. 1. 00 2 2 TOTAL 1. 00 2 External Opportunities WEIGHT RATING WEIGHTED SCORE Purchasing three 737 s at basement barging price 0. 30 2 0. 60 Internet 0. 30 3 0. 90 Deregulation of flights 0. 30 3 0. 90 Med Link 0. 10 2 0. 20 TOTAL 1. 00 2. 6 External Threats United Air 0. 20 2 0. 40 Delta 0. 20 2 0. 40 American Airlines 0. 20 2 0. 40 Ticket tax in 1997 0. 40 3 1. 20 TOTAL 1. 00 2. 4 The major airlines had also taken steps to compete directly with Southwest. The Shuttle by United, a so-called airline within an airline, was started in October 1994.

United's objective was to create a new airline owned by United with many of the same operational elements as Southwest: a fleet of 737 s, low fares, short-haul flights, and less-restrictive union rules. Although offering basically a no-frills service, the Shuttle provided assigned seating and offered access to airline computer reservation systems. United predicted that the Shuttle could eventually account for as much as 20 % of total United U. S. operations. Cost was the major problem for United in competing with Southwest.

For two main reasons, the Shuttles cost-per-seat mile remained higher than Southwests. First, many passengers booked their tick- ets through travel agents, which resulted in commission fees. Second, many of the Shuttles flights were in the San Francisco and Los Angeles markets, both of which were heavily congested and subject to costly delays. As well, the Shuttle was unable to achieve the same level of productivity as Southwest. Nevertheless, by launching the Shuttle, United was able to gain market share in the San Francisco and Los Angeles markets, largely at the expense of American, US Airways, and Delta.

The Shuttle also offered first-class and reserved seating. Concluding, we must state that weather the other companies try to imitate Southwest, the result where very disappointed because the southwest has realized that there is only for that market, and she is well aware with that. Concluding we must state that the reasons for Southwest success are well documented: It focuses on short-haul industries with an average distance of 425 miles. Thorough away meals, in flight films, designated seats, membership, central airports and a hub and spoke system-all the above assume that are closely relevant.

Also, with plastic cards, small or smaller airports and a 10 minute turnaround (30 - 35 usually for other companies) succeed the inevitable. Southwest understood that for short-haul destinations instead of surface transport (car) was a substitute of flying. By concentrating on the factors that lead people to choose one of these forms of transport over the other, and eliminating or reducing anything else, the southwest era created. The key was to consider, why people are flying over driving for short destinations; because they want, luxury, multiple seating, meals, drinks, etc The answer is, no.

There is only one reason that makes people to fly over driving: speed. People fly to save time. There is also and the opposite direction, on why the people are choosing the south west instead of the car; because they can take it and leave whenever they want. Thats why southwest delivers high frequent flights; to give this opportunity to her customers. Moreover, despite the competition Southwest gain the biggest market share; although other market offered grate opportunities on substitute markets; The fact is that southwest concentrate in price-sensitive and time-oriented customers that there were consisting the biggest percentage of the environment. Bibliography Exploring Corporate Strategy, Gerry Johnson-Kevan Scholes, 5 th Edition, Prentice Hall, 1999) Economics, John Slogan, 3 rd Edition, Prenctice Hall, 1994 Strategic Management, Fred R David, 8 th Edition, Prenctice Hall, 1999 The management of business logistics, Coyle, 6 th edition, WEST K.

Freiberg & J. Freiberg, Nuts: Southwest Airlines Crazy Recipe for Business and Personal Success (Austin, TX: Bard Press, 1996), p. 61. K. S.

Krause, Tougher Profit Story, Traffic World, June 7, 1999, p. 29 - 30. Bank Management, Koch McDonald, 4 th Edition, Dryden Publishing.


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