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Southwest Airlines Case Study
Name
Institution Affiliation
Course Name
Instructor
Date
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Introduction
Southwest airlines has been among the leading airline companies in the U.S by being a
company with unique, innovative strategies. The company began small, and today it became
what it is with corporations worldwide studying its strategic operations. Among Southwest
airlines innovative strategies have been creating cheaper airfares, installing a sense of intrinsic
value into its employees, and eliminating unnecessary services as one of the ways to enhance
turnaround times at airports.
The link between Southwest Airlines' Business Model, Strategy, Competitive Advantage,
and Profitability
Southwest Airlines Company has had unique business strategies. This defines how the
company can remained highly competitive within the airline industry as well as being profitable
even in the presence of its competitors. Rooted within its robust business strategy, the company
stated that it will continue with its sustainable and unsurpassed profitability record. It has
maintained an efficiency policy that will conserve and protect natural resources, enhances a
creative workforce, as well as gives back to the society it is living in and working for (Proven
Business Strategy, 2020). The company prides itself on remaining as an aggressive air-
transporter operating from one airport to another against its competitors, who usually need more
than three layovers to arrive their final destinations. The company's decision to reduce costs to its
customers led to a great boost to airfare sales, increasing shareholder profits. To foster its
reliability, the company is known to fly only one type of plane, the Boeing 737 (Hill et al.,
2019). Also, Southwest Airlines has focused on reducing its training, planes’ maintenance, and
inventory expenses. This has enhanced the crew and flight planning effectiveness.
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Southwest Airlines’ Distinctive Competencies, Resources, and Capabilities To Make It
Happen
Southwest airlines are seen to have mastered core competencies, identified ways to lessen
operational costs, enhanced efficiency with resources, and understood some new and brilliant
capabilities not experienced by its competitors. The company management instills core
competencies within its employees from the time of the interview process. According to
Srinivasan (2020), the first step includes a group interview to evaluate the candidates'
communications skills. The second step comprises of a one-on-one interviews where the
management checkout for the candidates’ attitudes towards serving others. Southwest considers
itself a customer-oriented business giving it a reason for having a hiring process that accesses
and evaluates whether the candidates are fit to work with its team. Additionally, the company has
enhanced its efficiency of resources and capabilities by reducing the need for a large number of
gates due to point-to-point hubs, checking baggage details, ticket counter representatives, and
technical support teams. For approximately forty-four years of profit gaining, the company has
survived in this competitive industry.
Ways Southwest Airlines Competitive Advantage can be Maintained in the Future.
Recently, Southwest was named as a Top airline in safety as it achieved a seven-star
rating. Thomas, (2020) asserts that the company found an extremely low incident rate and
virtually nonattributable to pilots. Its performance and compliance with COVID-19 made it to be
rated so highly compared to its competitors. This was a time that increased health concerns with
the transport sector being hit hard by gaining extremely low profits. Southwest airlines swift
respond towards the pandemic it’s a sign of how efficient it is in ensuring customer safety
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remains its top priorities thus earning its customers’ trust. However, for the company to ensure
its employees retain their jobs and salaries, it requires approximately 815 million dollars and will
raise the cash through selling and leasing 20 of its aircraft to avoid layoffs as a result of the
COVID-19 pandemic (Staff, 2020). The company’s obligation to its employees and choosing to
keep them over the planes is a mark of respect to its employees (“Proven Business Strategies,”
2020). This commitment will reinforce the company’s employees’ commitment giving a reason
as to why the company prides itself as being part of its employees’ families not just by offering
them jobs but caring and offering them support.
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References
Hill, C., Schilling, M., & Jones, G. (2020). Strategic Management (13th ed., p. 29). Mason, OH:
Cengage Learning, Inc. Retrieved from
https://ambassadored.vitalsource.com/#/books/9781337918749/
Proven Business Strategy. (2020). Retrieved from
http://investors.southwest.com/ourcompany/proven-business-strategy
Srinivasan, M. (2020, June 17). Southwest Airlines Operations A Strategic Perspective. Airline
Industry Articles. https://airline-industry.malq.net/southwest-airlines-operations-
astrategic-perspective/
Staff, R. (2020). Southwest to raise $815 million through sale and leaseback of 20 planes.
Retrieved from https://www.reuters.com/article/us-southwest-airlines-
leasing/southwestto-raise-815-million-through-sale-and-leaseback-of-20-planes-
idUSKBN22K2UT
Thomas, G. (2020). Southwest now a seven-star airline - Airline Ratings. Retrieved from
https://www.airlineratings.com/category/news/#:~:text=Southwest%20Airlines%20that%
20started%20the,global%20rating%20agency%20AirlineRatings.com

Unformatted Attachment Preview

1 Southwest Airlines Case Study Name Institution Affiliation Course Name Instructor Date 2 Introduction Southwest airlines has been among the leading airline companies in the U.S by being a company with unique, innovative strategies. The company began small, and today it became what it is with corporations worldwide studying its strategic operations. Among Southwest airlines’ innovative strategies have been creating cheaper airfares, installing a sense of intrinsic value into its employees, and eliminating unnecessary services as one of the ways to enhance turnaround times at airports. The link between Southwest Airlines' Business Model, Strategy, Competitive Advantage, and Profitability Southwest Airlines Company has had unique business strategies. This defines how the company can remained highly competitive within the airline industry as well as being profitable even in the presence of its competitors. Rooted within its robust business strategy, the company stated that it will continue with its sustainable and unsurpassed profitability record. It has maintained an efficiency policy that will conserve and protect natural resources, enhances a creative workforce, as well as gives back to the society it is living in and working for (“Proven Business Strategy,” 2020). The company prides itself on remaining as an aggressive airtransporter operating from one airport to another against its competitors, who usually need more than three layovers to arrive their final destinations. The company's decision to reduce costs to its customers led to a great boost to airfare sales, increasing shareholder profits. To foster its reliability, the company is known to fly only one type of plane, the Boeing 737 (Hill et al., 2019). Also, Southwest Airlines has focused on reducing its training, planes’ maintenance, and inventory expenses. This has enhanced the crew and flight planning effectiveness. 3 Southwest Airlines’ Distinctive Competencies, Resources, and Capabilities To Make It Happen Southwest airlines are seen to have mastered core competencies, identified ways to lessen operational costs, enhanced efficiency with resources, and understood some new and brilliant capabilities not experienced by its competitors. The company management instills core competencies within its employees from the time of the interview process. According to Srinivasan (2020), the first step includes a group interview to evaluate the candidates' communications skills. The second step comprises of a one-on-one interviews where the management checkout for the candidates’ attitudes towards serving others. Southwest considers itself a customer-oriented business giving it a reason for having a hiring process that accesses and evaluates whether the candidates are fit to work with its team. Additionally, the company has enhanced its efficiency of resources and capabilities by reducing the need for a large number of gates due to point-to-point hubs, checking baggage details, ticket counter representatives, and technical support teams. For approximately forty-four years of profit gaining, the company has survived in this competitive industry. Ways Southwest Airlines Competitive Advantage can be Maintained in the Future. Recently, Southwest was named as a Top airline in safety as it achieved a seven-star rating. Thomas, (2020) asserts that the company found an extremely low incident rate and virtually nonattributable to pilots. Its performance and compliance with COVID-19 made it to be rated so highly compared to its competitors. This was a time that increased health concerns with the transport sector being hit hard by gaining extremely low profits. Southwest airlines swift respond towards the pandemic it’s a sign of how efficient it is in ensuring customer safety 4 remains its top priorities thus earning its customers’ trust. However, for the company to ensure its employees retain their jobs and salaries, it requires approximately 815 million dollars and will raise the cash through selling and leasing 20 of its aircraft to avoid layoffs as a result of the COVID-19 pandemic (Staff, 2020). The company’s obligation to its employees and choosing to keep them over the planes is a mark of respect to its employees (“Proven Business Strategies,” 2020). This commitment will reinforce the company’s employees’ commitment giving a reason as to why the company prides itself as being part of its employees’ families not just by offering them jobs but caring and offering them support. 5 References Hill, C., Schilling, M., & Jones, G. (2020). Strategic Management (13th ed., p. 29). Mason, OH: Cengage Learning, Inc. Retrieved from https://ambassadored.vitalsource.com/#/books/9781337918749/ Proven Business Strategy. (2020). Retrieved from http://investors.southwest.com/ourcompany/proven-business-strategy Srinivasan, M. (2020, June 17). Southwest Airlines Operations – A Strategic Perspective. Airline Industry Articles. https://airline-industry.malq.net/southwest-airlines-operationsastrategic-perspective/ Staff, R. (2020). Southwest to raise $815 million through sale and leaseback of 20 planes. Retrieved from https://www.reuters.com/article/us-southwest-airlinesleasing/southwestto-raise-815-million-through-sale-and-leaseback-of-20-planesidUSKBN22K2UT Thomas, G. (2020). Southwest now a seven-star airline - Airline Ratings. Retrieved from https://www.airlineratings.com/category/news/#:~:text=Southwest%20Airlines%20that% 20started%20the,global%20rating%20agency%20AirlineRatings.com Name: Description: ...
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