Weak and Strong Points of Southwest Airlines Model Case Study Sample

1. Southwest is able to differentiate itself from competitors by offering low prices to its customers, while emphasizing high level of customer service. The ability to combine these two factors makes the company stand out and helps to offer a unique value to its passengers.
2. In order to maintain its current position in the market, Southwest should pay careful attention both to the level of customer service and continuous innovation, as well as to the cost reduction and efficiency enhancement.
3. Southwest airlines’ services do not fit all travelers, but only those, who travel only on short distances and who are not interested in ancillary services, such as on-board meals.
4. Southwest’s CEO aimed to develop an affordable way to travel that could compete not only with the offers by airlines, but also with other means of transportation, such as cars and trains.
5. The culture of humor in Southwest serves several purposes. Firstly, it helps the company to distinguish itself from competitors. Secondly, it raises employee commitment and job satisfaction. Thirdly, it helps the company to cope with unexpected situations, such as delays, in a way that passengers remain satisfies with the quality of service.
6. Avoiding luggage charges helps the company to distinguish itself from other airlines and to emphasize the fact that Southwest is truly committed to providing lowest fares. This method is rational also from the operational point of view in case there are no major variations in the average luggage weight.
7 Southwest airlines’ success is strongly based on the company’s ability to distinguish itself from the rivals and to offer unique value to the customers. This competitive advantage is based both on their successful low-cost no-frills operations model and their commitment to customer service and creativity in developing their business model.
8. Similar to most low-cost airlines, Southwest is likely to suffer from increasing fuel costs and rising environmental concerns. Additionally, as more companies try to duplicate Southwest’s model, the company may suffer from high competition, which can lead to the profitability decline.