This paper defines the positioning strategy for Southwest Airlines.

In the United
States, the airline industry is ever-growing. With advancement in newer technology,
equipment and better competitive strategies, it has become difficult for airlines to stay
on the top, or stay in the industry, for that matter.

The overall positioning strategy that Southwest has chosen for itself is the ‘less for
much less’ strategy (Kotler & Armstrong, 2008). This means that Southwest does not
offer much; it’s a no-frills airline. But it also does not charge a high price. It prices
itself according to the service that it provides; it is a low-price airline. Therefore, it has
positioned itself as the no-frills, low-price airline. Passengers fly without luxury; there
is no food, no first class sections and no reserved seats. However, they pay an
extremely low price for getting to their destinations along with their luggage (Kotler
& Armstrong, 2008).

Its major competitive advantage is its lower prices. It has also gained an edge in
hedging its fuel needs better than the other airlines. It is a no-frills airline and in many
cases, this works for Southwest as a competitive edge. More importantly, its exciting
and friendly atmosphere is a significant competitive advantage that many of the other
network airlines do not offer or cannot pull it off. Other competitive advantages
include just one type of plane for all flights; the Boeing 737 series, point-to-point
flying, simple in-flight service, and a relatively happier workforce (Brancatelli, 2008).

Positioning Map Attributes

The two main attributes of the company are price and the other is frills attached within
the flight. Based on these criteria, the positioning map is made below (U.S. Air
Carriers, 2003).
Repositioning Strategy
One strategy that immediately hits the mind is starting a business class in their
airplanes. This will be a new product available to the huge number of business people
flying regularly and might give them a sense of pride travelling in a different class to
the ordinary people. For the ordinary people an economy class can be started which
will be priced slightly lower than the business class. The only difference between the
two will be the level of service received for the business class will be better. (Kotler &
Armstrong, 2008)

Another product that Southwest Airlines can develop is start international tours at a
low price using several connecting flights as a source to keep the costs low. However
cities closer to the US should only be considered for such an initiation.

Southwest is the most popular domestic airline and carries the most number of
passengers domestically. Focusing on the domestic market and giving the lowest
fares, Southwest Airline has been able to gain a competitive advantage in the industry
and is one of few profitable airlines today in the times of economic recession.
Everywhere Southwest starts its flights, the fares of that destination from the
competitors fall due to the competitiveness in the industry that Southwest brings
(Pounds and Weil, 2001). However even with the intensity of low cost airlines in the
US, Southwest remains a market leader and does so by coming up with new marketing
campaigns, serving the most profitable routes and reducing its costs.