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Southwest Airline
threat
limitation
Marketing. Marketing savvy also plays a key role in Southwest's strategy. Since Southwest's inception, the major elements of the product offering have been price, convenience and service. As a Texas native serving mostly Texas markets, it has played the role of the hometown underdog, fighting against the majors. Now, when Southwest enters a new market, they use a sophisticated combination of advertising, public relations, and promotions in the belief that once people fly Southwest they will be hooked.
Growth. Despite its remarkable growth in what had been until recently a relatively moribund industry, Southwest has not emphasized growth as an objective. In fact, Herb Kelleher expresses a "go-slow" philosophy. For example, Southwest will not enter markets unless it perceives favorable conditions, which range from the wishes of the local community to the availability of an appropriate labor supply. Given its record of success and its reputation it is not surprising that there are many communities that want Southwest to serve their markets. After all, good air service is considered by most communities to be an essential aspect of economic development. However, Southwest's policy prohibits accepting monetary subsidies or other incentives that cities and airports offer to gain air service. Southwest has also demonstrated a remarkable ability to manage its growth, an essential commodity in an industry known for its complexity. The inability to manage rapid growth has been blamed for the failure of many carriers, including Braniff, PeopleExpress and ValuJet
Technology. Like all airlines ...