Key Success Factors for Southwest Airlines
The Southwest Airlines brand was founded by Herb Keheller and Rolling King in 1971. Since its start, the airline has used a unique approach of ‘feeling love’ to engage its internal and external clients. Besides seeking to spread love, the airline also charged low fares. As outrageous as it sounded, the airline sought to compete with the auto travel sector. The outrageously low prices provided the airline an advantage over other carriers (Muduli & Kaura, 2011). People who really needed fast and efficient travel over short distances sought the airline’s services.
For instance, the airline was able to achieve break-even in two years. After initiation, Baniff International, one of Southwest’s main competitors, offered a half-sale offer for two months between Dallas and Houston. Southwest Airlines countered this offer by allowing clients to choose their prices for the same destination and departure point. Clients could either pay $13 or $26. Clients who chose to pay $26 received rewards such as ice buckets and whisky shots. At least 80 percent of the clients chose to pay $26 (Muduli & Kaura, 2011). This example shows the ingenious strategies that the airline applies to ensure it remains in the leading position among low-cost carriers.
Employees at the airline understand their assignment was to ensure short turnarounds. This approach would increase the volume of sales for Southwest Airlines. The targeted turnaround period was 15 minutes. Employees had the liberty to use creative means to ensure that travelers enjoyed their flights. This liberty to apply their creativity is a motivating factor because employee recognition during the annual general meeting was included in the company’s culture.
Teamwork is a significant aspect of getting tasks completed at Southwest Airlines. When the baggage handlers are overwhelmed, pilots assist with this task. The underlying concept is to eliminate the ‘it is not my job’ mentality (Sengur & Sengur, 2017). To achieve a workforce that holds this mentality, the HR department conducts group interviews for flight attendants to determine their behavior in the presence of potential colleagues. Besides teamwork, employees are required to possess technical knowledge of their professions. Access to skilled labor facilitates the workforce’s competence.
The airline’s business model offers significant convenience to travelers and enables differentiation. The airline utilizes a point-to-point model as opposed to the traditional hub and spoke. The airline’s model enables short, nonstop, and direct flights. This has led to significant market share in multiple areas for the airline, an aspect that spurs its consistent growth. Furthermore, the airline relies on one type of aircraft fleet to deliver services. This strategy facilitates the management of maintenance costs due to the uniformity of the fleet. It also grants the airline the ability to bargain for better prices from suppliers due to the volume of parts. This facilitates the company’s ability to offer low-cost flights.
To facilitate international expansion, the airline utilizes acquisition. In 2011, the airline acquired AirTran Airways. It also utilizes the first-mover advantage by taking on new routes that do not have existing flights. For instance, the airline was the first to offer flights to three Caribbean destinations in 2014. These included the Bahamas, Jamaica, and Aruba. The ongoing reconciliation efforts between USA and Mexico at the time facilitated the growth of the new route (Factors That Have Strengthened Southwest’s Domestic Presence, 2016). Southwest Airlines operates using a unique model that prioritizes volume over price. Clients’ happiness is a significant factor during their flights. The ability to take on new opportunities in the market and ensure employees are happy and satisfied has facilitated significant growth.
References
Factors That Have Strengthened Southwest’s Domestic Presence. (2016). Forbes.
Muduli, A., & Kaura, V. (2011). Southwest Airlines Success: A Case Study Analysis. BVIMR Management Egde, 4(2), 115-118.
Sengur, Y., & Sengur, F. K. (2017). Airlines define their business models: a content analysis. World Review of Intermodal Transportation Research, 6(2), 141-154. https://doi.org/10.1504/WRITR.2017.082732
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Question 
Key Success Factors for Southwest Airlines
What are the key success factors for Southwest Airlines for product competencies, attributes, intangible assets, or competitive capabilities that have the greatest impact on future success in the marketplace? Note: In addition to looking at special attributes (features) and intangible assets (patents), examine the following capabilities: Technology (expertise in technology), Manufacturing KSF (i.e., access to a sufficient supply of skilled labor), Distribution-related KSF (i.e., Strong Network of wholesalers or retailers), Skills and capabilities-(expertise in design or short time delivery capability such as FedEx). Please pull a peer review.