Free Case Study On Southwest Airlines

1. High level of customer service combined with low operation costs and the ability to offer creative services to the customers make Southwest different from other companies and add value for its passengers.
2. The company believes that the core of its activities is providing customer service and not just flights, that is why customer focus is the highest priority for Southwest. Moreover, continuous cost reduction is another crucial issue for the airline, and it is more important for Southwest than for other airlines.
3. Southwesat business model only fits travelers, who travel on short distances and expect only „no frills“ service.
4. The unique pricing of Southwest aimed to create a more competitive environment in the airfare industry and to allow people from Texas and then for the whole America to enjoy affordable flights and superior customer service.
5. The culture of humor is consistent with the brand image of the company, which was developed in the course of the company’s history and is expected by the passengers. It gives the company its competitive advantages and makes them different from their rivals.
6. The decision to avoid luggage charges distinguished Southwest from other airlines, creating a positive image and reinforcing the perception of a low-cost carrier. It is especially effective nowadays, when it has become common to charge a baggage fee, thus giving Southwest its competitive advantage. However, the uncertainty about the weight carried and carrying costs are strong arguments against the policy adopted by Southwest.
7. The success of Southwest airlines can be attributed to the uniqueness of their low-cost model that gave the company a competitive advantage over rivals. This success was further reinforced by the strong company spirit, commitment to high-level customer service and the culture of innovation, which helped the company to adjust to the changing market environment.
8. There are several challenges that Southwest faces in the future. Rising tariffs and fuel costs create profitability pressure and force to increase ticket prices, while the growing number of copycats increases competition.