Question 1
Southwest adds value through its people (the employees), culture, and the strategy which has ensured high operational efficiency (low operational costs), simplicity, excellent customer service, and fun. The company’s culture and low cost strategy has made it embrace efficiency and simplicity in all its operations. Only one type of plane is flown, thus reducing the maintenance and training costs. Southwest also adds value through its innovative HR management practices and excellent communication which is frequent, timely, and aimed at solving problems. The company cares deeply about its employees and encourages them to efficiently satisfy the needs of the customers. The employees are highly unionized and are the highest paid in the entire industry. The employees make Southwest different from other airlines.
Question 2
The competitive priorities of Southwest are achieving higher labor productivity and maintaining the low costs. As compared to other airlines, Southwest is the most heavily unionized and the salary rates are above average. In addition, the company prioritizes its target customers by ensuring simplicity and maintaining low fares.
Question 3
Southwest is not for all travelling customers. Its services are simple and basic thus not attractive to the business travelers and those interested in class. It does not offer meals thus locks out those interested in meals.
Question 4
Question 5
The culture of humor is important in ensuring that there is fun during flights. This culture should be maintained so that the airline remains attractive as a place for fun.
Question 6
Failing to charge for luggage doesn’t mean that Southwest is missing out on easy money. Instead, this is a marketing approach that ensures the company attracts more customers through the low costs.
Question 7
Success of Southwest airlines is attributed to its employees and its strong management.
Question 8
The main future challenge of the company is its simplicity. It lacks segmented sitting options and does not attract the class travelers. The company heavily depends on one producer which prevents it from getting the services of other producers. Southwest is localized within U.S.A and does not provide international flights. In future, the company can offer international flights, purchase from various producers, and expand its range of services.
