Southern airlines add value by ensuring that the employees and customers they have are satisfied with the services offered. The management ensures that there are no customer complaints and if any, they are solved immediately. The employees are paid well and they are allowed to dress such that they are comfortable. These measures add value to the airline. This is what makes the airline different from other airlines whereby employees can be laid off and complains by customers are not dealt with effectively.
The competitive strategy of the southwest airlines is retaining of employees and customers. Generally, management of human resource is the competitive strategy. Ensuring satisfied customers brings more customers and the old ones are maintained. Retaining employees helps reduce costs of the organization since no expenses of training are incurred. Other airlines try to reduce costs by ensuring few employees who are paid low salaries which is different from the strategy used by southwest airlines.
Southwest is a company that serves all types of travelers. This is because it has various types of planes all over the world. Furthermore it serves customers with luggage and those without. Therefore the airline serves all travelers.
The fare that southwest airline are based on the cost per customer plus a six percent profit margin. The airline is able to charge low price due to the fact that its cost per customer is below the industrial average. This is through the strategies of reducing costs such as maintenance of employees hence no training expenses and using already available airports that need little maintenance.
The importance of maintain the culture of southwest airline is that the company is able to retain its customers and employees. These people enjoy their journeys. Retaining customers means that profits can be assured to the airline.
It is true that southwest airline lose money by not charging luggage. However, my opinion is that there are more advantages of not charging airlines as compared to charging. By this act, the airline is able to retain and attract more customers hence earn more profits.
The success of the Southwest airline can be attributed to its strategy of ensuring satisfied customers. No charges on luggage, low fare charges and fun during travel. Satisfied customers attract more customers hence increasing profits. The profitability of the airline has made it possible to expand and hence its success.
The challenge that southwest airline is facing is the ever-changing technology. It seems that the airline is not so much concerned about the new technology considering that its employees do not go for training and the airline uses old and small airports. This can create a loophole whereby other airlines can take advantage of technology and compete out southwest airline.
Lauer, C. (2010). Southwest Airlines. Santa Barbara, Calif: Greenwood.