Professional Documents
Culture Documents
Growth with consistency: When they enter a new city they want to make sure
that they do the business which is consistent throughout the system
Market-Entry Strategy
How the company prices its new routes?
• They look to grow in the market when they enter the city
(quadruple and quintuple the number of passengers in a particular route)
•On the Oakland-Burbank route, SWA quadrupled the passenger market within two
years and drove out USAir and United in 3 years time.
Low-Cost Strategies:
-Pilots contributing new ideas to save fuels
-Fuel costs
-Buying fuel from vendors who offer best prices : Carry inventory if possible
-Gate costs & landing Fees
-Average : $2.50 pp,
-Small airports: $2.00 pp, Large airports: $6 - $8 pp
-No. of Departures
-Maximize productivity of people and machinery . Atleast 20 departures per day
-Low cost service
-Offering great service at low cost : SWA cost per passenger was 7.3 cents in 1993.
3. Distraction. Didn’t pay more than industry. And only retirement plan
was profit-sharing which really supports the low-cost satisfied customer
strategy.
4. Looking at the decision about routes that must be made for the two new planes –
the choice being considered is between Baltimore, Dayton, or Phoenix.
a. What decision fits best with the operating philosophy?
b. What fits best with the business model?
c. Which would Herb go with?