Question 1
Southwest Airlines adds value by focusing on developing a relationship culture within the organization as well as with the customers. For instance, they have flight attendants who sing the safety instructions to the passengers. By focusing on the people, the Southwest Airlines has the capability to develop a positive people culture, which makes them different from other airlines in the industry. Through focusing on the people, they are able to achieve the needs of both customers and employees.
Question 2
As a competitive strategy, Southwest Airlines focuses more on developing a people culture, which most of the other players in the airline industry find hard to match.
Question 3
Southwest airline is not for all the travelling customers. The airline does not have any first class service or meals. Additionally, it normally uses smaller airports, which are normally at a distance from most business destinations. Such a situation may cause delays to people with deadlines to meet.
Question 4
The pricing strategy to set low fares is to show that they offer value. The fare is set based on the cost of transporting a passenger.
Question 5
It is important for Southwest airlines to maintain its culture of humor on its flight. This is because, in the airline industry, the people culture gives it a competitive advantage over other airlines. As long as the employees are happy and customers are satisfied the business will continue to grow.
Question 6
I do not think that the Southwest airline is missing on easy money. It cost the airlines 7.5 cents per passenger mile to operate, which translates to 2 cents below the industry average. With such cost, they can afford to offer the free service as a way of attracting more customers.
Question 7
The success of Southwest airline is attributed to the dedication to ensuring that employees and customers are satisfied.
Question 8
The challenge that Southwest airline is likely to face in the future is the rising cost of jet fuel. Such cost can impact on its competitive advantage. To handle such a challenge, Southwest needs to devise new solutions that will help reduce the rising cost of jet fuel.
