This 5 page paper looks at a case study regarding Southwest Airlines. The success of the company is in part attributable to its ability to keep airfares low. Bibliography lists 6 sources.
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company did well by offering very low fares for short distances, and Kellerher always took a conservative approach in respect to expansion (2000). It was financed through profits as
opposed to debt (2000). One poor move though was the acquisition of Muse Air in 1986 (2000). Still, Southwest grew and in some markets, even faster than anticipated;
cities that did not have Southwest presence had even petitioned for service (2000). It became popular very quickly. Southwests low fares made it difficult
for the large companies to compete and USAir, American and United even dropped some routes (Hartley , 2000). American considered a no-frills shuttle but the question as to
whether or not anyone could beat Southwests record remained (2000). What made Southwest so special? Some key factors are cost containment, employee commitment, conservative growth efforts, and geographical expansion (2000).
If marketing mix is defined as price, product, promotion and distribution, then which elements of the marketing mix are important to this case study? Here, it appears that price
is essential as it is the price that first attracts customers and makes other airlines unable to compete. The reason why price is so important to this case is because
it does not follow a normal path. Vilcassim & Kadiyali (1999) explain that a company reacts to a rivals price through cutting their own prices. And while there had
been air fare wars in the past with competing airlines, when it came to Southwest, it was not only competitive by price, it competed by route as well. Southwest avoided
major hubs, thus cutting its costs. Distribution then in terms of the marketing mix is also relevant. In any event, Southwest did what other companies could not do. They effectively