Friday, August 27, 2010
Low Cost Strategy
Southwest employs a low cost strategy. The main way that it keeps its costs and prices low is by using a point to point service. Traditional airlines use a hub and spoke service, which is where they fly to a main location and then to their destination. By using a point to point service, Southwest makes short but direct flights; although in recent years they have been flying more long distance flights.
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Tara,
ReplyDeleteDo you think that the Continental-United merger changes something in Southwest strategy? Have you read something about that?
Alex
I havent read anything yet, but I will keep an eye out. But I think that Southwest will maintain focus on their low cost strategy.
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