Southwest Airlines Case Analysis
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Southwest Airlines
The airline industry provides an excellent and necessary service to worldwide customers. At speeds of 500 miles per hour, airplanes reduce the length of travel tremendously. However, in order to have functioning airplanes, there must also be businesses that control and manage the airplanes and their travels. Not only does this require billions of dollars, but the competition among the varying businesses is fierce. This creates a massive barrier to entry to prospective incumbents, as well as a necessity for differentiation among the existing airlines. Once an airline is established as a substantial player, there are many problems that must be solved in order to survive. One major problem is that the airline industry, as a whole, is extremely susceptible to economic cycles. Such as in the wake of September 11th, the U.S. industry suffered losses estimated around $5 billion...