How Does 9/11 Affect The Marketing Environment

The Marketing Environment Southwest Airlines

Various events in 2001 affected the operations of many companies in the airline industry chief among them being as the Southwest Airlines. These companies have been affected by economic, technologic, political, demographics and other natural environment changes. However, most of these changes come from the 9/11 incident, issues to do with fuel and the recession. Today, the airlines are operating at smaller profit margins than they were doing in the past. The only time that these companies make a profit is when they fill the airplanes. The implication of these changes has been to cut the prices, offer fewer flights with the aim of filling the planes and increase the profit margins. The period from

The airline fare prices have reduced as a response to the reduction that began in 2001. However, other operating costs have not reduced. For example, fuel prices have remained high leading to the airlines having many losses in the process. The other economic issue that has affected the airline is the cost of labor. It takes around 28% of the operating costs (Belobaba, Odoni, and Barnh, 56). However, based on the competition in the industry, it is not possible for the airline to increase its fares to cater for the increases in the costs of labor and fuel. This has left the airline with losses in the early years of the 2000s. The insurance costs have increased after the 9/11 attack, which has increased the operating costs of the

Many airlines offer the same service and Southwest Airways should change its ways of addressing challenges arising from the environmental factors affecting the industry. One of the ways through which Southwest Airlines has done is to ensure compliance with all the regulations and environmental requirements. For example, the company has already started the use of biofuels instead of the normal fossil fuels. The marketing strategy resonates well with the customers. Coupled with low fare prices for flights across the country, environmental sustainability and corporate social responsibilities help the company retain the customers who have been using the airline and attract more potential customers who are environmentally sensitive (Eurocontrol n.p.).

The company has had to change its marketing strategy by depicting itself as one of the cheapest airlines in the globe. Its marketing strategy involves the use of free food staffs as a form of promotion to the customers. It also markets itself as one of the most technologically advanced airlines culminated by the acquisition of the latest brands of planes that are safer (Southwest,