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    Southwest Airlines - Flat rate price to frequent flyers

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    1. An overview of the southwest airlines.

    2. A description of the new product or service which is flat rate price to frequent flyer passengers to build loyalty.

    3. An explanation of the importance of marketing to your selected Southwest Airlines success.

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    Solution Preview

    Southwest Airlines stand at the 6th position in terms of revenues however is the best airlines as of December 2007 in terms of number of passengers carried every year. The airlines fly to almost 65 different destinations and have carried the highest number of passengers since 2006 when compared to all of its competitors.

    Southwest Airlines - Competitive Edge:
    Southwest Airline's business model is focused directly at only one area i.e. Low cost flights for short distances. The main competitive edge that the company has is that it has designed its business model in a manner where the company's main aim is to keep the price low to increase profitability rather than increase its market share. The company has analysed the market well and it understands the specific market niche. This can be considered as the company's biggest advantage over other competitors as the business model is well focused and the flight works on point to point rather than hub - and - spoke system. The company has also been the first to take up the initiative to start a website which is now the number one airline website in the industry and more than 69% of the passengers check in using the website (Henkle, et al, 2008). Also, the company is the pioneer in the ground keeping time of the aircrafts and the company is the only one with the least amount of ground time for the flights - an average of maximum 20 minutes to maximise profits. Also the company believes in providing its personnel with all the critical information ...

    Solution Summary

    The solution provides an overview of southwest airlines followed by the detailed discussion of the new service. Finally the importance of marketing is also analyzed.