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2 pages/≈550 words
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MLA
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Business & Marketing
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Essay
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English (U.S.)
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Southwest's Competitive Advantage (Essay Sample)

Instructions:
Discuss the basis of Southwest's competitive advantage? Use the information and links below to write the paper. Use mainly facts from the information given. Discuss the bottom points. Key competitive advantages: * Low Operational costs / High Operational Efficiency * Award winning customer service * Human Resource practices / Work culture Southwest clearly has a distinct advantage compared to other airlines in the industry by executing an effective and efficient operations strategy that forms an important pillar of its overall corporate strategy. Given below are some competitive dimensions that will be studied in this paper. 1. Operational Costs and Efficiency 2. Customer Service 3. Employee/Labor Relations http://www(dot)malq(dot)net/airline-industry/southwest-airlines-operations.html source..
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Discuss the basis of Southwest’s competitive advantage and the potential challenges to its strategy
Southwest airline has fought many battles primarily engineered by the major airlines for over four years before it got its first fight off the ground in 1971. Later on, the company had to work around regulation intended to penalize SWA’s decision to operate out of “Dallas Love Field” instead of moving to the new Dallas-Fort Worth (DFW) airport (Case 27, 1). With Kelleher’s brilliant legal expertise and extensive lobbying of the House of Representatives, the issue was settled and SWA was allowed to operate out of the Love Field in 1979. Southwest Airline, also known as discount airline, is the largest airline compared to the others in the United States. It was founded by Rollin King and Herb Kelleher on June 18, 1971. It focused on passengers reaching their destinations in time and paying low transport costs. Moreover, it was the first airline to offer ticketless system of travel and also the first one to fly a single aircraft. It was also the first to offer a program of sharing profits to its workers. Its mission is to give employees a stable working environment and an equal learning and personal development opportunity (Case 17, 1).
Basically, Southwest Airline has various strategies that it applies in order to come out successful operation in the transport industry. First, has few operational costs and it is efficient. It is able to lower its operational costs by opting for secondary airports, using electronic ticketing, carrying consistent airlines, using point-to-point flying routes and also ensuring high airline operations.
As a tool for providing competitive advantage, SWA attracted many customers in that it offered airfares that were so low. Most of the operations were going on well, with everything increasing steadily with time. The CEO Mr. Herb Kelleher’s secret was to satisfy his employees, which resulted to satisfaction of the customers. By first using himself as an exam...
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