please read and answer questions 1 and 2 on this mini case study of South Airlines

Marketing Excellence management substitute arcraft, reschedule fight crews. and transfer mechanics quddy and effortlessly One of Southwest's biggest cost savings techniques >> Southwest Airlines its strategy of purchasing us options years in advance Southwest Airlines debuted in 1971 with ittle money but Jet fuel is an arline's largest expense and now accounts lots of personality. Marketing tse as the LLV arine, the for 35 percent of operating costs versus 13 percent just a company featured a bright red heart logo and reled on ittle more than a decade ago. Many of Southwest's long- Outrageous antics to generate word of mouth and new term contracts allowed the arine to purchase fuel at $51 business. Fight attendants in red orange hot pants served per barrel, a significant savings especially during the 1980s Love Bites peanuts and Love Potions drinks). Today, it and 2000s whenol soked past $100 per barrel Analysts is Fortune's seventh-most admired company in the world estimate thas saved more than $2 billion this way How did a small budget airine accomplish so much? Southwest also improves its fuel efficiency by mak Southwest's business model is based on streaming its ing its planes lighter. Crew members power-wash the jet operations, which results in low fares and satisfied, loyal engines each night to remove dr. plones carry less water consumers. The company uses a point-to-point routing in bathrooms, and seats have been replaced with ighter system, flying thousands of shuttle trips between different models. Because the airline consumes approximately 1.5 pairs of arports or "points" and carrying more passengers bilion galors of jet fuel each year, every inor change per plane than any other arine. Each aircraft averages adds up 6.25 fights a day, flying for almost 12 hours. Southwest Southwest has expanded by entering new markets can accomplish such a feat because it avoids the tra other artines overprice and underserve. These usually ditional hub-and-spoke system and has extremely fast include secondary cities with smaller airports, whose turnaround. In its early years, it turned planes around in lower gate fees and reduced congestion promote faster less than 10 minutes. Today it averages 30 minutes-hat turnaround and lower fares. The company believes it can the industry average reduce cores by one-third to one-half whenever tenters Southwest's unique boarding process who helps a new market, and it expands every market it serves by expedite departure. Instead of getting assigned seating. making tying affordable for more people. Southwest ac passengers are put in one of three groups A Band ured Ar Tran in 2011 for $1.4 bilion, expanding its con- given a number when they check in Group A boards trist sumer base and adding new destinations like Richmond, and in numerical order for example, A1-A301 Once on Morphis, and cities in Mexico and Puerto Rico, its first board, passengers may st anywhere they like international locations Southwest also saves by tying only Boeing 737 Southwest has pioneered unique services and pricing 700s and 737-800s. This simplifies the training process programs such as same-day freight service, senior dis- for plots, fight attendants, and mechanics and lets counts, Fun Fares, and Ticketless Travel. The arline was the first with a Web site, the first to deliver Ive updates on Cross the company, embodying the idea of employees ticket dous and the first to post a blog. In recent years, caring about themselves, each other, and Southwest it has added revenue through premium ticketing features customers." "Our fares can be matched, our airplanes like premium boarding positions at the gate and early and routes can be copied But we pride ourselves on our bird check in which automatically assigns the best seat customer service," said Sherry Phelps, director of corpo possible rate employment. In fact, having a sense of humor is a Throughout Southwest's history, its advertising has to selection criterion for hiring. As one employee explained. cused on low fares, frequent fights on-time avals, anda We can train you to do any job, but we can't give you the top safety record. The company uses humor to convey its right sprit." warm, mendy personality. Its tagine, "Ding! You are now tree to move around the country," was a parody of in-light Questions announcements. The lighthearted at ttude carries over to entertaining on board messages, crews who burst into Southwest has mastered the low price model and song in the terminal, and several personalized aircrafts, has the financial results to prove it. Why don't other including three parted like flying orca whales. airlines copy Southwest's model? Despite its no-trils service Southwest wr's the 2 What risks does Southwest face? Can t continue hearts of customers. The company consistently rarks at to thrive as a low-cost arine when tough economic the top in customer service for airlines and has the lowest times hit or other arines mimic its busness model? ratio of complaints per passenger. It has been Fortune magazine's most admired US airine since 1994 and are one of its five best places to work. Southwest's financial Do results also shine the company has been profitable for 41 straight years, with no wayoffs despite a travel sumo cre ated by the slow economy and fears of terrorism. When other artines started charging for baggage, drinks and MW snacks, Southwest went against the tide with a hagsty 230 free policy Athough the hot pants are long gone, Southwest's NYSE stock symbol is LUN, and red hearts are found Financial Stateme....pptx Financial State