1. How does Southwest add value? What makes Southwest different from just “any airline”?
Southwest Airlines adds value through its focus on simplicity, efficiency, excellent customer service, and fun. Its lower prices, outstanding delivery of service to customers, innovative human resource management practices, and efficient operations to drive the low cost structure, makes Southwest different from other airlines. Some of the operations include the purchase of only one type of plane to ensure large discounts during purchase and reduce the maintenance and repair costs. The company also adds value through its excellent communication – it communicates frequently, in a very timely manner, and with efforts directed towards solving problems.
2. How would you describe the competitive priorities of Southwest? How does this differ from other airlines?
The competitive priorities of Southwest are its target customers and its employees. Over the years, the company’s target customer has been its priority: a customer interested in travel efficiency and not class, a customer ready to forgo a meal in exchange for a friendly flight attendant. For its employees, the company’s competitive priority is to encourage the employees to go extra miles in satisfying the customers.
3. Is Southwest for all traveling customers? Why or why not?
No, Southwest is not for all traveling customers. Customers interested in travel class do not like the simple and basic services of Southwest. Besides, it does not offer meals for those interested in meals other than beverages and snacks.
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)?
5. Why is it important for Southwest to maintain its culture of humor on its flights?
One of the objectives of the company is to make travelling fun. Through the culture of humor, the airline makes travelling fun for its passengers and employees. This makes it more attractive compared to its peers.
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?
Even though the company may be missing out on easy money by not charging for luggage, it still stands to benefit greatly. I believe this is part of the company’s low cost strategy which has accelerated its success.
7. To what do you attribute the success of Southwest airlines?
I attribute the success of Southwest airlines to its employees.
8. What challenges is Southwest facing in the future and how should they meet those challenges?
It lacks the travel class and has limited cargo and freight services. The company also spends more on its employees; in fact, Southwest employees are the highest paid in the air travel industry. In order to meet these challenges, the company needs to expand its services to meet the needs and desires of all the customers.
