1. How does Southwest add value? What makes Southwest different from just “any airline”?
The Southwest Airline has a different approach of adding value. The value addition is realized on two fronts the workforce and the quality of service offered. Southwest Airlines highly values both its employees and the clients.
2. How would you describe the competitive priorities of Southwest? How does this differ from other airlines?
The competitive priorities of Southwest Airlines lie in both the workforce welfare and the customers’ welfare. The other strategy is the acquisition of similar planes so as to reduce the maintenance cost and the cost of training employees. Through providing the customers with unparalleled quality, the airline overcomes its competition.
3. Is Southwest for all traveling customers? Why or why not?
Yes, the Southwest airline accommodates any traveler in the United States. This is because, for Southwest Airlines, every flight is an experience. It does not segregate travelers as it offers premium service to all the travelers. This is marked by the fact that Southwest Airlines does not offer a classed flight system.
4. During Herb Kelleher’s interview in the video, what did he state was his unique pricing strategy to explain his incredibly low airfares (i.e., how did he decide how little to charge for fares)?
While Herb Kelleher acknowledges that a low pricing strategy has been used widely in the airline industry, he asserts that it is not necessarily a profitability strategy. Profitability, he insists is a mix of several factors that that are not realized by price alone. Southwest Airlines has perfected the art of this balance that encompasses the entire company right from the customer, to the workforce.
5. Why is it important for Southwest to maintain its culture of humor on its flights?
Consistency is critical to the performance of any business. It is important that the company upholds this culture because that is the brand they have created. The customers expect it that way and it could be the reason the always board that Southwest Airline flight.
6. Given that Southwest is the only major U.S. carrier that doesn’t charge for luggage, they are missing out on easy money, or are they? What is your take on this decision?
My take on this is that they use this as a competitive advantage; almost every traveler carries some form of luggage. It is common sense that the exemplary service and the lack of luggage charges will leave no logical traveler wouldn’t take the flight to save on cost.
7. To what do you attribute the success of Southwest airlines?
The company culture is the greatest reason of the success of Southwest airlines. With a warmhearted workforce all operations in the airline runs smoothly and keeps making profit. On the other hand, customers keep coming back and the market expands. The other advantage that the success of southwest airlines can be attributed is the expanse of the market.
8. What challenges is Southwest facing in the future and how should they meet those challenges?
The cost of doing business is on the rise, given that the United states is coming out of a recession with the airline industry having been hard-hit. This is reflected in cost aspects such as high fuel costs. In order to overcome the challenges the airline should invest in better efficient airplanes and to abandon the unprofitable routes.
Works cited
Bailey, Jeff. "Southwest. Way Southwest. - New York Times." The New York Times - Breaking News, World News & Multimedia. N.p., n.d. Web. 13 July 2012.
Freiberg, Kevin, and Jackie Freiberg. Nuts!: Southwest Airlines' Crazy Recipe for Business and Personal Success. Austin, Tex: Bard Books, 1996. Print.
Holstein, William J.. "At Southwest, the Culture Drives SuccessBusinessweek - Business News, Stock Market & Financial Advice - Businessweek." Businessweek - Business News, Stock Market & Financial Advice. N.p., n.d. Web. 13 July 2012.
