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Taking A Look At Southwest Airlines

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When Southwest airline is merged with Air Tran Air, it is going to emerge as the best airline in the industry. This is well outlined by its management on the available resources. Considering the history of this airline, Herb Kelleher who was its co-founder and a former CEO, he had established a very satisfying environment which boosts the satisfaction of the customers, enhances the morale of the employees and all these are geared at ensuring that the industry is working at a profit according to Jackson et al., 2012. This culture empowers the workforce in the industry(Mullins, 2013). According to Jackson et al...2012, Southwest Airlines advocated for happy employees because, if the employees are happy, the customers will also be the happy band …show more content…

Value chain will have its focus on particular activities which are going to generate costs and at the same time create value for the buyers. Any strategy which is of help to the airlines it should focus on the financial performance of the airline. Below is a discussion on how the porter’s five tests to efficiency will be of great help to southwest airlines and also its …show more content…

This distinctive tailored chain enables the company to gain a competitive advantage. This can only be achieved if the company sets some limits. This strategy can be achieved by coming up with new positions which call for creating a unique something and at the same time making choices which cannot be made by anybody else. Southwest Airlines achieved this by having a unique set of activities which did not include seat assignments and transfer of baggage.
Trade-offs: Although some company’s term trade-offs as a weakness to a company, trade –offs are so important in highlighting the differences between companies and also it make it difficult for the companies to copy from one another. Companies have to retain their proposition by creating a unique market positions, for example, the southwest airlines.( Gittell, 2010) Trade -offs make very crucial strategies by having the need of choice both for the customer and the company itself. The trade-offs used by the Southwest Airlines to retain its market position include having no seats assigned, no first class, no meals, no planes other than 737s and also lacking baggage transfers. Thus the other competitors may also choose to not to do some things so long as they are not affecting the profit been made by the company so that they may retain their position

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