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Airline Competitive advantage is Southwest airline case position of a company in a competitive landscape that allows the company earning return on investments higher than the cost of investments.
Learn all about our Southwest Plus Credit Card. Receive 3, bonus points and earn 2 points for every $1 spent directly with Southwest Airlines and Rapid Reward Hotel & Car Rental Partners. Featured» Customer Case Studies» Southwest Airlines: Transforming IT and Development for the World's Largest Airline Website × Share this Presentation Facebook. The focus of the case is on whether Southwest Airlines should buy gates and slots to initiate service to New York's LaGuardia airport, which does not fit the airline's profile .
Competitive advantage should be relevant, unique and sustainable. We will write a custom essay sample on Southwest Airline case study or any similar topic specifically for you Do Not Waste HIRE WRITER Competitive advantage can also be seen as a superiority gained by an organization when it can provide the same value as its competitors but at a lower price or can charge higher prices and providing greater value through differentiation Porter, For a company to sustain its competitive advantage its must possess a core competence which is a unique ability that he as develop over time that cannot be Southwest airline case by its competitors.
Core competence is what gives a company one or more competitive advantage, in creating and delivering value to its customers in its chosen field. The sustainability of competitive advantage depends on three conditions, the first is the particular source of the advantage, secondly sustaining advantage requires change, it demands that a company exploit, rather than ignore industry trends, it also demands that a company invest to close off the avenue along which competitors could attack and lastly, to sustain its position a firm may have to destroy old advantages to create new higher ones.
Portal, For the purpose of this study we shall be taking southwest airline as a case study, Southwest Airline is a major U. Southwest was incorporated in Texas and commenced operations on June 18, with three Boeing aircraft serving three Texas cities- Dallas, Houston, and San Antonio.
Today Southwest operates nearly Boeing aircraft to 59 U. Southwest has the lowest operating cost structure in the domestic airline industry and consistently offers the lowest and simplest fares wordpress. Southwest also has one of the best overall customer service records. Some of its major rules are: Southwest Airline uses only one type of aircraft which is boewingwith this system they only need to train all their mechanics on only one types of airplane thereby reducing the cost of labour from manpower.
Because they fly on on type of plane through all their routes they keep inventory for that type of airplane, if they need to swap a plane for maintenance at the last minute the plane is changeable on the spot without the stress of incurring extra cost that may arise as a result of swapping planes and time wasting.
Southwest airline major business strategy of lowering cost is that they concentrating on airport that are underutilized and close to metropolitan areas thereby reducing airport charge cost and brings service close to their customers.
The fleet of aircraft they use is fuel efficient boewing s, aside the fact that they reduce mechanic maintenance cost they also reduce fuel consumption cost by using boewing aircraft.
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Mostly importantly, another very important strategy adopted by southwest airline is utilization. Each plane in the fleet flies extra flights per day, saving on maintenance and training costs.
Utilization of cost effective revenue streams have been critical to their success. Southwest were one of the first airlines to have a website in early Southwest gained a reputation for outside the box thinking and proactive risk management, including the use of fuel hedging to insulate against fuel price fluctuation.
Aircraft turnaround time is 15 minutes, this is facilitated by multi tasking crews, with pilots and air crew cleaning the plan while on the ground. On average there are 94 employees per aircraft in contrast to competitors who haveand the south west staff serve on average passengers per year compared to competitors Another major strategies used by Southwest Airline to sustain competitive advantage and to maintain its market share was its fuel hedging strategy and passenger friendly technology which was introduced by Gary C.
The executives of southwest airline Know that its impossible to pass higher fuel prices on to passengers by raising ticket prices due to the highly competitive nature of the industry.
The fuel hedging strategy was employed to reduce amount spent on jet fuel per annual. Compare and contrast between the strategies adopted by Southwest Airlines and those of other airlines in the industry.
Southwest as adopted a major strategy which as differentiate its operation from other airline in the industry.Southwest currently serves destinations in 40 states while American Airlines operates to nearly destinations in more than 50 countries meaning American Airlines possess a greater market share in the U.S.
airline industry. Southwest had begun to restrict hiring for those positions to women in order to adhere to Southwest’s public image as an airline focused on the concept of love. Southwest relied on this image, which emphasized the femininity and sex appeal of Southwest’s flight attendants and ticket agents, in order to attract male customers to the airline.
Southwest Airlines is known for its unique approaches to employee satisfaction and organizational procedures. This lesson will discuss Southwest Airlines' competitive advantage. Southwest Airlines - Chase Credit Cards. The Archetypical Low-Cost Air Carrier: Southwest Airlines Essay - Abstract The seventh largest major domestic airline in the United States (US), Southwest Airlines, is commonly known or .
Southwest allows alcohol to be carried in checked luggage under the following conditions. by the Transportation Security Administration (TSA), other airport security authorities, as well as searches by airline personnel.
(including case or covering) exceeds the sizing requirements for carryon items (10"x16"x24"), it can be carried.