Case Study on Southwest Airlines Discussion

Case Study Southwest Airlines
Customers’ satisfaction has been an integral part to the success of
southwest airlines and the airline industry in general. Deregulation in
the industry has intensified the competition among airlines. With this
being the case, service quality has been given more attention to ensure
improved customer satisfaction hence loyalty. Southwest airline as a
company was established to provide frequent and low cost airline
services to the market. The company has dedicated itself to offering
high quality services to its customers. Their strategic goal has been to
provide low cost services and to identify the customers and how to
satisfy them. Its products involve offering the travel services to the
low and middle class people as its target customers. Southwest airline
has successfully proven itself to be the best low-fare airliner in the
industry (Gittell, 2005). Its strategy is simply providing the best
probable service to its clients and the workforce.
There are many market opportunities available for the company to create
a competitive advantage over other airlines. Customer satisfaction has
over the years become an integral factor that contributes to the success
of any company regardless of the industry in which it belongs. This is
because of the benefits it brings to a company. It is generally accepted
that for a company or organization to remain profitable hence successful
it must be able to satisfy its customers. Customer satisfaction in the
airline industry has acted as an exit barrier. This is because a company
can only be able to achieve customer loyalty through great customer
satisfaction (Lauer, 2010).
Southwest airline has been of success by offering valuable products that
allow for new opportunities in the market, offering rare products that
are difficult to obtain in the market, offering inimitable products that
are difficult to copy by the competitors since it offers with low prices
and ensuring that its products are absorbed in the organization and are
carried with other resource (Arthur & Gamble, 2010).
Southwest airline faces the threat of turnover of its top officials and
upper management. The leadership problems cause the management turn over
since not all the people have the same skills and ethics. The Southwest
airline has limited options when purchasing the planes and they have to
buy the planes at the prices set by the suppliers. This is because the
suppliers enjoy a monopolistic culture (Daft, R2006).
Expansion into larger markets and growing into a bigger airline with
larger jets could allow the business to go in certain customer divisions
and geographic markets. The company needs to forfeit many elements of
their strategy that have confirmed successful effects e.g. the low-cost

Arthur, A. T. & Gamble, J. E. (2010). Southwest airline in 2010:
Culture, Values and operating practices. Essentials of strategic
Daft, R. L. (2006). Organization theory and design. Mason, OH:
Thompson-South Western.
Gittell, J. H. (2005). The Southwest Airlines way: Using the power of
relationships to achieve high performance. New York: McGraw-Hill.
Lauer, C. (2010). Southwest Airlines. Santa Barbara, Calif: Greenwood.