Question One
Southwest airline adds value by increasing the satisfaction level of its customers and having lower rates. The airline is different from other airlines since it offers efficient services and the working environment of its employees is conducive. Further, value addition has enabled the airline to differ from others in terms of growth and profitability.
Question Two
The competitive priority for Southwest is based on customer satisfaction to earn a larger market share by providing effective services to its customers. This differs from other airlines, which are profit oriented. A situation, which undermines the quality of services from these airlines.
Question Three
Southwest is for all travelling customers. This is because the airline provides equal services without discrimination to its customers. The airline does not have special preferences for certain groups of people, but cares about all customers equally.
Question Four
The unique pricing strategy was cost based pricing. The lowest price was determined by determining what it would cost the company to operate one mile for each passenger.
Question Five
It is important for Southwest to maintain a culture of humor, so that it does not lose its well-developed corporate reputation. Further, the company has earned trust from its customers, which indicates that it has to maintain its culture of humor to maintain these customers.
Question Six
Yes. Southwest are missing easy money by not charging for luggage. This is because luggage adds to the required drive power for flight, which means more fuel consumption. Consequently, the cost for a flight may increase to significant levels. However, the weight for luggage matters where heavy luggage costs more than light luggage.
Question Seven
Success of Southwest airlines is based on having effective operation strategies, which focus on satisfying employees, as well as customers.
Question Eight
Future challenge for Southwest is competition. The company should focus on devising new strategies, to ensure that new entrants and similar companies do not impose an intensive competition.
