Business Wars

Sony was preparing Playstation to eventually replace personal computers. Microsoft sees that coming and goes into combat mode. Bill Gates spends more than two billion dollars to launch Microsoft’s Xbox console with innards that Gates hopes will not only put Sony on the defensive but will one day replace PCs as the future of digital home entertainment.Support us by supporting our sponsors!

Host David Brown chats with freelance journalist and series writer Joseph Guinto about the 22 years he’s spent covering Southwest Airlines… including his memories meeting and interviewing Southwest’s major players, from Rollin King to Herb Kelleher himself. Plus, the famous part of Southwest’s history that didn’t quite happen the way the company says — it’s all on this episode of Southwest vs. American Airlines, on Business Wars.Support us by supporting our sponsors!

Thanks to deregulation, no-frills knock offs of Southwest take to the skies like crows. About 120 airlines have gone out of business or filed for bankruptcy since the industry was deregulated in 1978.American’s SABRE system optimizes...everything. It manages ticket pricing so flights are always full, and American is building new hubs and terminals. Meanwhile, Southwest company culture is shifting from sex appeal to backyard barbecue vibe. Is it enough to attract families to fly?Support this show by supporting our sponsors!

Everyone loves Herb Kelleher—even FAA regulators. The onetime corporate counsel-turned-CEO is coming into his own at the helm of Southwest. But his latest challenge is coming up with a way to skirt the FAA’s pesky “slot” system, designed to limit air traffic by rationing takeoffs and landings. Kelleher has a business to run. So he embarks on a crazy plan to snag a few extra slots for Southwest. It may not work, but one thing’s certain: it will be a whole lot of fun.Support us by supporting our sponsors!

As deregulation dawns, Southwest Airlines’ founder and CEO are locked in a power struggle. In the middle is Herb Kelleher, Southwest’s corporate attorney. And after 18 months serving as a punching bag for the company’s top brass, he’s had enough.But as Southwest deals with a succession crisis, American Airlines is facing another emergency. It needs money, fast. The company is cash-poor after investing in its proprietary online reservation system, SABRE. The situation is so dire CEO Al Casey turns to a drastic option — moving the company’s headquarters from its homebase in New York City to Dallas.Just as American is getting a financial lift, Southwest takes a nosedive. Deregulation has the company eyeing expansion routes, but the powers that be will do anything to stop it.Support us by supporting our sponsors!

The computer age is on the horizon, and American Airlines has a secret weapon: SABRE. Sure, the airline is top of the heap under the current pen-and-paper reservation system — the one where travel agents use a massive phonebook to look up flights, then call individual airlines to book a ticket. But they’re tired of playing phone tag. The American Society of Travel Agents has plans to roll out a new electronic system, one that could force American to lose its unofficial preferred status. The company has to get its system to market first — and its leaders have to convince the travel agencies to get onboard.But there’s a much bigger threat looming on the horizon, one that could give a big boost to upstart rivals like Southwest Airlines. Deregulation is coming, and when it does it will change everything.Support this show by supporting our sponsors!

Baniff and Southwest battled in court for domination over the skies. Southwest came out on top for a little while, but Baniff pushed back with prices Southwest just couldn't beat. The only way Southwest could fight back was to give the mostly male, mostly businessmen clientele something they couldn't refuse: free booze. For the first time ever, Southwest is in the black. With Baniff tamed, there's more turbulence. This time, it's a national airline. American Airlines is here to play.Support this show by supporting our sponsors!

In Texas in the 1960s, Rollin King had a crazy idea. He wanted to create a no-frills airline service that served San Antonio, Dallas and Houston. All he and his lawyer had to do was convince the Federal Regulations Bureau that they had no jurisdiction on flights that never left Texas. Of course getting Southwest off the ground would have been a lot easier if they had any planes…Support us by supporting our sponsors!

Host David Brown chats with series writer Tristan Donovan, author of Fizz: How Soda Shook Up the World, about some of the juicy tidbits that didn’t make the final series. Like Fanta’s roots in Nazi Germany, Pepsi’s frantic struggle to make sure Coca-Cola didn’t beat it into space, and why Coca-Cola bottles have that iconic silhouette. And then there’s the cola that almost dethroned Coke. (Hint: it’s not Pepsi). David Brown even cops to his favorite cola...and the answer may surprise you.Support us by supporting our sponsors!

Coke continues to grapple with Pepsi’s winning ads, but as Y2K nears both companies realize this isn’t just a cola war anymore. There’s more backlash for both companies, this time from schools. Coke and Pepsi are now seen as allies in America’s obesity. Both companies consider this but choose drastically different paths for the future. One gets as far away from soda as they can, the other doubles down. Both wrestle for dominance over every pocket of the soft drinks market - juice, bottled water, sports drinks and yes, cola - and show no signs of slowing anytime soon.Support this show by supporting our sponsors!

With the Pepsi Challenge under attack by Coke, Pepsi needs a new ad campaign. So the company turns for inspiration to the biggest pop star in the world: Michael Jackson. Meanwhile, Coca-Cola has a new chief executive who’s convinced tinkering with Coca-Cola’s prized formula is the key to winning the cola wars. He’ll stop at nothing to bring Coca-Cola fans New Coke—whether they like it or not. Support this show by supporting our sponsors!

Welcome to the Pepsi Generation. As Pepsi fires up a hot new ad campaign, Coca-Cola starts getting nervous. But a sudden plane detour through Ireland gives Coke executive Bill Backer inspiration for one of the most iconic ads of the 20th century. It seems Coke is on top once again—but Pepsi has another trick up its sleeve. The company is out for blood with the Pepsi Challenge, a nationwide taste test that will endanger the most precious part of Coca-Cola lore: its secret recipe.Support this show by supporting our sponsors!

With world war on the horizon, Coca-Cola and Pepsi face a supply crisis. How to get enough sugar to continue bottling their sweet fizzy goodness? One man has the answer -- to secure its supply line, Coke must sell itself as the all-American cola. For GIs and liberated citizens the world over, Coca-Cola will become a symbol of hope. But the company’s all-hands patriotic marketing strategy leaves Pepsi out in the cold. With Coca-Cola claiming Europe, America’s number two cola turns south of the border to survive. Support this show by supporting our sponsors!

The cola cops are coming. Pepsi, an upstart Coca-Cola imitator, grabs its rival’s attention by serving up its own beverage to unsuspecting soda fountain customers. Coca-Cola moves fast -- but it’s not enough to stop Charles Guth, Pepsi-Cola’s new owner and the head of Loft Candy. He stays one step ahead of Coke with his dirty business practices. It’ll be up to lawyer and turnaround artist Walter Mack to stop the baddest man in the candy business.Support us by supporting our sponsors!

In turn of the century Atlanta, pharmacist John Pemberton has invented a dynamite health tonic with some secret ingredients his customers can’t get enough of. There’s only one problem. With the city about to go dry, the temperance authorities are coming for him. Pemberton needs to cook up a new recipe, fast — before his own demons tear him apart.And there’s another problem on the horizon. Its name is Pepsi-Cola.Support the show by supporting our sponsors!

We hope you enjoyed our series on eBay vs PayPal. Here to discuss her thoughts on the PayPal mafia alums is Kara Swisher. Swisher is the self-described "grumpy lady of tech" and host of the podcast Recode Decode. She's known for her tough takes on Silicon Valley, is Silicon Valley royalty, and even had a cameo in Season 1 of HBO's Silicon Valley. Have we mentioned Silicon Valley enough? Here's our conversation with Kara.Support this show by supporting our sponsors!

PayPal is running out of time. The online payment service is hauling in new users, but its bottom line is bleeding red. Without a buyer to pump it full of cash soon, the company could go under. Should it take the safe route and sell out to its longtime nemesis eBay? Or should it risk the open market with an initial public offering? Why not both?You support this show by supporting our sponsors!

By late 2000, PayPal and X.com are yoked together, with X.com CEO Elon Musk leading the newly combined company. But it’s a rocky marriage: PayPal’s founders clash with their new leader over everything from his imperious management style to his choice of server platforms. Finally the PayPal loyalists decide there’s only one option left: it’s time to engineer a coup.You can support this show by supporting our sponsors!

Remember the summer of 2000? The Olympics were in full swing and PayPal was under attack. Not from eBay, but Russian hackers. In looking for soft targets in the early days of the untethered Internet, PayPal was the fattest cow. On top of that, there are competitors, and they’re catching on fast. Between the money stolen from hackers and competitors, PayPal has to figure out a way to survive, and fast.Support this show by supporting our sponsors!

In the midst of the dot-com boom, there's also a lot of dot-com bust. PayPal desperately needed to grow but they companies who'd raised millions more suddenly disintegrate. The solution was so simple it seemed almost illegal - let the converted proselytize. And they do to incredible results. It doesn't take long for eBay to notice but there's nothing they can do to stop PayPal's viral momentum.Support us by supporting our sponsors!