The Airline Industry: A Strategic Overview of Southwest Airlines Terra Thompson Ohio Dominican University Running head: SOUTHWEST AIRLINES 1 The Airline Industry: A Strategic Overview of Southwest Airlines Terra Thompson Ohio Dominican University SOUTHWEST AIRLINES The Airline Industry: A Strategic Overview of Southwest Airlines Table of Contents 2 The History of Southwest Airlines ..................................................................................
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Industry Competition 3 Chapter Outline 3-1 Industry Life Cycle Stages 3-2 Industry Structure 3-3 Intensity of Rivalry among Incumbent Firms 3-3a Concentration of Competitors 3-3b High Fixed or Storage Costs 3-3c Slow Industry Growth 3-3d Lack of Differentiation or Low Switching Costs 3-3e Capacity Augmented in Large Increments 3-3f Diversity of Competitors 3-3g High Strategic Stakes 3-3h High Exit Barriers 3-4 Threat of Entry 3-4a Economies of Scale 3-4b Brand Identity and Product
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order to achieve its long-term objectives. In What Is Strategy?, Michael Porter explains that in today’s dynamic economy, positioning itself within a market is no longer sufficient in order to sustain competition. Instead, competitive advantage is achieved by using three key principles of strategic positioning, “Defining and communicating the company’s unique position, making trade-offs, and forging fit among activities.” (Porter) The goal of a unique positioning strategy depends on the organization’s
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RAND Journal of Economics Vol. 33, No. 2, Summer 2002 pp. 298–318 Firm financial condition and airline price wars Meghan Busse∗ A firm that knows that cutting price may trigger a price war must weigh present versus future gains and losses when considering such a move. The firm’s financial situation can affect how it values such tradeoffs. Using data on 14 major airlines between 1985 and 1992, I test the hypothesis that firms in worse financial condition are more likely to start price wars. Empirical
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(SISs) and explain their advantages. Describe Porter’s competitive forces model and how information technology helps companies improve their competitive positions. Describe 12 strategies companies can use to achieve competitive advantage in their industry. Describe Porter’s value chain model and its relationship to information technology. Describe how linking information systems across organizations helps companies achieve competitive advantage. Describe global competition and global business drivers
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The current economic climate has had a direct impact on the Irish airline industry. People have less disposable income and as a result Dublin airport has witnessed a decline in passenger numbers since 2008. Figures released by the DAA show a significant decline in passengers from 23.5 million in 2008 to 20.5 million in 2009; a decrease of 13% and it s expected that numbers will fall even further in 2010 to 19 million passengers. Ireland is one of the few European countries to impose a 10 travel
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Words DATE: 21st April 2011 INDUSTRY OVERVIEW An Airline is a scheduled air transport facilitator. There has been a major increment in fleets to connect all major airports of the world due to technology development. This aids to reduce cost and flying more people. Since 1970, there has been a 5 fold increase of traffic at the airports of the old 15 Euro states airports. The contribution to total GDP of Europe is 3.1% (€ 275 billion). European Airline Industry focus is to offer steady, loyal
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Yinka Adegbola 27576 Michal Milewski 29201 Table of Contents 1. INTRODUCTION: 3 2. SITUATIONAL ANALYSIS 3 3. EXTERNAL ANALYSIS OF MACRO ENVIRONMENT 4 4. MICRO ENVIRONMENT (Porter 5 forces) 5 5. SWOT MODEL 5 5.1 Strengths 5 5.2 Weaknesses 6 5.3 Opportunities 7 5.4 Threats 7 6. CHALLENGES 7 7. MARKETING INFORMATION 7 8. CRITICAL ANALYSIS OF THE CURRENT PLAN 8 9. POTENTIAL STRATEGIC OPTIONS FOR VISIT BRITAIN 8 10. RECOMMENDATIONS
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strategies: The firm ability to offer products and services that are perceived by the customer as being superior and unique relative to those of its competitors like Coca-Cola in the soft drink industry...... A value chain can be described as the key activities engaged in by the organisation or industry.: Value chain analysis may benefit an organisation in a number of ways including: - Value chain framework: complements other recent initiatives like strategic cost management, which refers to the
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3 Industry Analysis: The Fundamentals When a management with a reputation for brilliance tackles a business with a reputation for poor fundamental economics, it is the reputation of the business that remains intact. —Warren Buffett, Chairman, Berkshire Hathaway The reinsurance business has the defect of being too attractive-looking to new entrants for its own good and will therefore always tend to be the opposite of, say, the old business of gathering and rendering dead horses that always tended
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