COMPA N Y C A S E

SOU T H W E S T A IR L INE S
GROUP BLINK :
NGUYEN MAI ANH(17)
NGUYEN MAI ANH (18)
PHAM THI HAI YEN
TABLE OF CONTENTS

•1. SUMMARY OF THE CASE STUDY

•2. QUESTIONS RELATED TO THE CASE
•3. EXAMPLE IN VIETNAM
1. SUMMARY OF SOUTHWEST AIRLINES
SOUTHWEST AIRLINES: ONE
OF THE MOST POPULAR AIRLINE IN THE WORLD

1967 1972 2009

AMERICAN AIRLINE SINCE IT THE ONLY
FOUNDED BY STARTED AIRLINE TO
HERBERT FLYING, CARRY MORE
KELLEHER AND SOUTHWEST PASSENGERS
ROLLING KING AIRLINES HAS THAN IT DID THE
NEVER LOST YEAR BEFORE
MONEY
FORMULA
 NO-FRILL” AIRLINE:

• FIRST-COME, FIRST-SERVED
• DOESN’T SERVE MEALS, ONLY BASIC SNACKS
• DOESN’T PROVIDE ELECTRONIC ENTERTAINMENT
• LOW-PRICES

HOW TO INCREASE PROFITS

 “BAG-FLY” FREE CAMPAIGN >> FINANCIAL SUCCESS

A TRONG VALUE EQUATION

 NOT ADDING NEW FEES >> DRIVE GOOD MESSAGE TO CUSTOMERS
 QUESTION 1 : WHAT BENEFITS DO AIRLINE CUSTOMERS SEEK WHEN THEY BUY AIR TRAVEL TICKETS? HAS
SOUTHWEST DONE A BETTER JOB THAN COMPETITORS OF MEETING THE NEEDS OF THESE AIR TRAVELERS? IN WHAT WAY?

• - CUSTOMER SEEK FOR BETTER SERVICES WITH PRICE PAID:

• + EXPERIENCE COMFORT AND ENTERTAINMENT
• + ACCESS TO GOOD QUALITY OF FOOD AND DRINK
• + NO HIDDEN COST
• - SOUTHWEST HAS CREATED A CHANGE IN THE OUTLOOK OF THE ECONOMY CLASS AIR
TRAVEL

• + LOWER FARE
• + DO NOT TAKE ADVANTAGE OF CUSTOMERS' PROFIT WHEN THE AIRLINE IS AFFECTED
BY THE GLOBAL RECESSION: >> NO HIDDEN COST

• HUMOROUS FLIGHT ATTENDANTS

•
QUESTION 1 :

>> AS A RESULT THEY GET MORE SUCCESSFUL IN FINANCE THAN OTHER BRANDS
QUESTION 2: HOW HAS SOUTHWEST EXECUTED VALUE-BASED
PRICING?

• - GIVING MAXIMUM VALUE TO THE CUSTOMERS AND GREAT BENEFITS FOR THE
PRICE PAID

• - DRAWING LOW PRICES FROM THE BEGINING

• - PROVIDING SPECIAL CUSTOMER SERVICES WITH NO HIDDEN COST
>> THEY ARE LOW-COST PRODUCER AND LOW-FARE LEADER IN THE U.S
- SOUTHWEST TAKE INITIATED A COMPAIGN TO COMMUNICATED CUSTOMERS THAT
“BAG FLY FREE” AND FACED CRITICISM ABOUT DOES NOT CHARGE FOR CHECKING
LUGGAGE.