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First, the arenas in which the company operates are well defined. Southwest Airlines specializes in short-haul flights, charges low prices, and is careful about flight safety. It targets buyers of short-haul services who are quite sensitive to prices. With a geographic scope of specific, domestic regional markets, Southwest Airlines is the only point-to-point carrier among the major airlines. Therefore, the company’s organization is considerably easier to maintain. Second, in order to achieve a low-price structure, as vehicles of its strategies, Southwest Airlines devised a number of stratagems...
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