Southwest Airlines Case Study Example | Topics and Well Written Essays - 750 words

Southwest Airlines - Case Study Example Some actions required for Southwest Airline during that period were decreasing income, market share, intensifying competition, and degrading operational effectiveness. Reason In 1978, after deregulation of Airline industry in U.S. the entire airline industry become too competitive as many of the privet companies tried to grab the market share by expanding their coverage and by reducing the service price significantly. In the mean time, Shuttle by United becomes the biggest threat for Southwest Airlines. In fact, Shuttle by United competed with Southwest Airline by matching the latter’s price and services. However, suddenly United BY Shuttle decided to incorporate two major changes that left the management of Southwest airline in state of confusion. Firstly, it discontinued its services from the most wanted markets i.e. California, Oakland-Ontario. Secondly, it also increased first class coach fare by $10. State objectives To respond against intensifying competitive forces spec ifically, rivalry among the market players likes Shuttle by United. To increase the revenue through an effective promotional and pricing strategies To expand the services coverage in the most profitable market areas. To enhance the operational performance in comparison to market leaders. Market Research After the deregulation U.S. airline industry, the entire market became highly attractive and degree of competition also increased significantly. By 1994, the U.S. airline markets turned into giant sectors as all types of carriers including major, national regional was accounted more than 2 billion annual revenue per year. The big five companies excluding Southwest Airline held more than 80% market share. One the hand, with increasing completion, the industry operating performance kept enhancing. Comparing to 1974, in 1994, there had been significant growth in revenue passengers-miles, available seat-miles, load factors etc. Since, 1990 till 1994, Southwest Airlines was the best perfo rmer as it significantly enhanced its operating performance and income. Market Segmentation Southwest along with Shuttle by United used to compete directly in same markets mainly, in California regions. The news of United’s withdrawal from a major route i.e. Oakland-Ontario might indicate that low fare strategy negatively impacted operational performance and United tried to avoid such situation. However, it kept focusing on California market. Therefore, this markets was also the best suited for Southwest airline. Southwest Airline also did not offer its services in many markets of California like in San Francisco. This would have a highly profitable. Southwest Airline did not compete with Shuttle by United on basis of fare classes like first class, business and economy class. By focusing on fare classes it was possible to specify and define customers’ marker segment. Price During that period, the competition in Airline industry was also based on pricing strategy. South west Airlines started to focus on low fare pricing strategy and it emphasized on its discounting offers. Southwest airline found difficult to compete with Shuttled by United. However, in order to compete with the key rival, Southwest reduced its fare price causing diminishing yield factor. Promotion Southwest mainly focused on creative marketing and promotional activities was meant to create brand differentiation. The prime agenda for

Information for Marketing Assignment Example | Topics and Well Written Essays - 2500 words

Information for Marketing - Assignment Example Their investments are across Middle East and North America (Clare, 2006). This they do by providing hybrid capital investments, finances and equity to a range of clients, whether large or small corporations, entrepreneurial guided or even businesses. By the 31st f December 2011, the bank had financial services, investment management and banking as its major divisions. Activities in the banking sector include finance provision, receiving of deposits, services related with treasury, structured products and securities trading. On the other hand, the segment of investment management involves quoted equities, the real estate and private equity. Finally, the financing services include the corporate finance, business advisory services as well as brokerage services. The bank delivers services and products to the wholesale, high net worth individuals and institutions across asset classes (Esposito, 2004). The bank’s mission is to be commitment to excellence in the delivery of Sharia compliant investment banking products and services. With the international rapid growth of Islamic finance, the EIIB’s categorical business model aims to fill the gap between western financial markets and those belonging to the Islamic world. They are particularly showing their determination in this pursuit because of the confidence they boast due to their unique position to benefit from London as the head financial center globally. In their annual report of 2006, they stated that their capabilities were then in place largely, and that in the subsequent year, they would demonstrate their teams full capabilities in the structuring and distribution of innovative and more developed products. This bank was formed and incorporated in 2005 January 11,th with the key objective of attaining a license as the very first independent FSA authorized Sharia compliant Islamic Investment Bank in the United