Southwest airlines add value by using distinctive marketing strategies involving target pricing and proper market orientation. The company reconceptualizes its services in comparison to its competitors in the United States air travel market in order to hit the price target profitably. The company also uses low pricing as a means of adding value. This is because its inception was as a competition to Intra city cars, rather than other airline services. This means that the Southwest airlines attract a large number of travelers than other airline services.
What makes the Southwest airlines different, from just any other airlines, is their low pricing strategy coupled with the fact that it has maintained its original inception strategy of Intra city flights. It exists with the aim of serving customer needs profitably.
The key to the success of the Southwest airlines is its competitive approaches, which includes market orientation and target pricing. The pricing is influenced by the perspective of the customer values backwards to the definition of services and costs. This has made the Southwest airlines the most profitable in the world of commercial air services.
Other airlines rely on low costs without considering the aspect of market orientation. This is what makes the company different from other airline services. Despite low pricing being a strong and competitive strategy, Southwest airlines have coupled it with target pricing, leading to a strategic focus; hence redefining of their services and providing the company with a winning advantage.
Southwest airlines do not target hubs like other airline services. This means that the company is for all travelling customers regardless of their social classes. The airline company was initiated to compete intra city travel service providers like cars, hence accommodates all travelers.
The unique pricing strategy of the company came about with the reasoning that it would help customers to choose the company over other transport options available. The founder explained that it was a strategy to get the largest market share since it will be getting customers to their destinations whenever they want, and at the most affordable price. This is also coupled with the idea that they would have a fabulous time throughout the flight. This is the reason why the customers would develop brand loyalty.
Humor on flights helps the customers to endure boredom and discomfort on a journey as long as seven hours, which has got only one stop.
The Southwest Company does not charge for customer luggage, hence loses a considerable amount of money. This is a competitive strategy to attract the highest number of customers; hence making it recover the money. This decision is a tactical way of attracting customers, hence recovering the luggage fees.
The success of the Southwest airlines is attributed to the company services and strategies. The company chooses to use secondary airports because they are normally less congested than the primary airports. This helps the company aircrafts to save time. Scheduling is also another strength that the company uses to succeed. This is also a strategy that helps the planes not to lose time on the ground. This also minimizes the overall minimum operational costs of the company.
The future of the Southwest airlines is not clear since it faces challenges due to the increasing competition and the rising global fuel prices. These are external factors that affect the operations of the airline company, and the company will have to deal with them or else it gets out of business. The changes in external factors, like fuel prices, means that the future of low cost airlines is unclear.
Further, the company’s fame is in shambles because of the changing cultures. The company was ones the best to work for, yet the departure of the founder Kelleher, a charismatic leader, has led to attitude change among the American population of America. This means that the company has a challenge in the future in retaining its market name.