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What is Southwest Airlines Growth Strategy Analysis about?

Southwest Airlines faced two major issues in the 1990s: 1) how to sustain its low-cost differentiation strategy long-term, and 2) how to expand into new markets. Three expansion options were analyzed: adding a new route within its system; growing in Chicago; or establishing a base on the East Coast. An analysis of risks, returns, and demand forecasting was conducted for each option using NPV, payback period, and sensitivity analysis. The analysis found that a moderate option of expanding within its system b

Author

Roger Mauricio Prado

Language

EN