Southwest Airlines 1.)Â Â Â Â Â Many changes have occurred and are occurring in the airline industry, which pose a potential threat to Southwest Airlines. The airline industry has traditionally had many airlines receive annual loses on their income statements. This trend is still continuing today as many airlines stand in financial trouble. Some of these financial troubles arise from changes brought upon them from the ever-changing governmental regulations. The most recent change in governmental regulations that will have the largest effect on Southwest Airlines is the change in the federal ticket tax in 1997 on flight routes that are one thousand plus miles. This new tax system replaces a percentage tax with a tax that includes a flat segment fee that will cause conflict with the low-fare carriers. This is causing Southwest to make some changes in their strategy, which will cause them to lose some of their cost advantage. Their largest cost advantage over their current rivals is in the flights, which are five hundred miles (59% cost advantage). Their cost advantage is much smaller for the larger flights, which are one thousand five hundred miles (35% cost advantage). This already has caused Southwest to change their strategy by making their nonstop flights longer with over 16% of their flights longer than one thousand miles. Â Â Â Â Â Another threat that Southwest Airlines is facing is the mimicry by other airlines. Other airlines are copying Southwestâ€™s strategy in order to enter the low-fare, short-haul market. Delta Airlines has built a low-fare regional carrier service and has acquired a minority stake in three regional airlines. United Airlines is also making a serious entry into the same market. United is doing this with United Express, which will feed passengers from regional carriers into the United system, and United Shuttle, which provides over 450 short-haul flights in the western states. Â Â Â Â Â The opportunity for expansion is limitless for Southwest Airlines.
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Corporate personality - Essay Example ive Officers (CEO) of large corporations as well as marketing managers of even smaller organisations are not hesitant to spend large sums of money in creating brand awareness through advertisements which also helps create the identity of the organisation among its customers. Against this background, it can be noted that the concept of â€œcorporate personalityâ€ is topical and is indispensable especially to organisations which are seriously concerned about making profits as well as ensuring their survival and viability in an environment characterised by stiff competition. In order to get a clear understanding of the concept of corporate personality considering the attitude of the courts to this important part of company law, it is imperative to begin by explaining what corporate personality is. Corporate personality is mainly concerned with establishing and maintaining the identity of a company (Gibson 1998). This involves creating the brand name or logo of the company which will be used as its identity to distinguish itself from the other companies operating in the same industry. In a free market, competition by various players is so intense such that there is need for companies to come up with strong brands that will make them different from the other players. This is particularly very important in that it will allow the customers to choose and identify with particular products which can help generate more revenue on behalf of the customer. This also helps the organisation to position its unique brand in the market which can give it a competitive advantage. However, gaining competitive advantage is not the only purpose of corporate personality but there is more to that than what is generally believed by many people. The operations of different companies are guided by the legal framework obtaining in that particular country. The laws in different countries are also particularly designed to protect the citizens from losing their money when they enter into