SOUTHWEST AIRLINES

Q) What are the most important strategic choices ?

Ans Competitive Advantage and Differentiation Strategy

Southwest airlines achieved competitive advantage by ;

COST

 Underused airports
 Use of Boeing 737 i.e. only single aircraft model
 Southwest offered short point to point routes
 Cost controlled in-flight meals ( 20 cents vs. $ 5)
 Short ground time and prompt take offs ( i.e. 15 mins )
 No reserved seats and commission of travel agents
 Fuel hedging

LEADERSHIP

 CEO Herb Kellher ; motivation leading to competitive advantage

 Organiation structure i.e. flat
 Employees are assets

DEVELOPMENT STRATEGY

 Southwest’s main goal was to expand existing routes customer base instead of external
expansion.
 Southwest closely observed the market for any niche or opportunity.In 1991 , after the
closure of Midwest airlines, Southwest took hold on Midway airport in Chicago,Illnois.
 Southwest had a consistent expansion strategy making them enable to offer same
services in any city they started operations.