Southwest Airlines Case Study

Topics: Southwest Airlines, LaGuardia Airport, Cost Pages: 2 (659 words) Published: February 2, 2013
1. According to me, Southwest Airlines have been much more successful than it’s competitors because of it’s low-prices policy (supported by it’s effective cost-management), it’s focused then expanded strategy, it’s good time management, it’s unique culture, and it’s ability to adapt to changes in the market and the customers’ expectations. About the price policy, Southwest airlines began by offering prices at least 60% of the average coach fare and still offers really low fares now compared to other airlines. Its tight cost-management enables it to offer such prices: it makes the maximum utilisation out of the fleet, doesn’t serve meal onboard, doesn’t have any first class or assigned seats, choose less-congested and costly airport. Moreover, Southwest airlines made the smart choice of being really focused at the beginning and expanding itself afterwards: at first, it focused on only a few cities and a few number of airplanes and now even if it follows a strategy of expansion it still only operates in 64 cities and uses only Boeing 737.Its good time-management also differentiates Southwest Airlines from its competitors: it began by imposing a 10 minutes turnaround which has increased over the years but remain very low compared to competitors and tries to avoid delays as much as possible (and has won best on-time arrival record several times).Furthermore, Southwest unique culture is a reason why it has been more successful than it’s competitors. It describes the Southwest way as “Servant’s Heart” and “Fun-LUVing attitude”, hires fun and positive people, has a “Culture committee”, set parties, has a profit sharing and stock ownership program, is very unionized. Last but not least, Southwest has managed to adapt itself to changes in the market, the environment and the customer’s expectations while keeping its root values by for example adding flight, conquering new airports, introducing code-sharing agreement, making the boarding process change, proposing new...
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