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Running Head: SOUTHWEST AIRLINES

Southwest Airlines Case Study Questions

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SOUTHWEST AIRLINES

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1. How does Southwest add value? What makes Southwest Airlines different from just
“any airline”?
According to Lawton (2017), Southwest Airlines adds value in two ways. The first one is by
working on a ‘low prices’ strategy. Since the foundation of the airline, Herb Kelleher, the
founder and the CEO of the airline believed that provided the airline was operating profitably
while at the same time offering its tickets at a lower price as opposed to its competitors, then its
proposition value would be added. Additionally, Southwest Airlines offers points to its
passengers when they board their aircraft based on the destination distances. The more the points
a passenger garners, he or she can use these points to get a flying voucher. This makes the airline
gain more customers while at the same time maintaining their loyalty. By making the passengers
happy, the company gets good ratings and with the good ratings, they gain additional value. One
of the main thing that makes the airline different from any other airline company is that the
airline gives the passengers the privilege of choosing their own seats every time. The other thing
is that the company allows bags to fly free of charge. Other airlines charge up to $100 depending
on what the bags are carrying. This makes the airline unique. Additionally, the airline does not
charge any passenger in case they cancel their flights due to any reason. Other airlines charge
t...