Introduction
Southwest Airlines (SA) is not just a market leader in the airline sector but also a fierce rival that should not be disregarded. Worldwide businesses research Southwest Airlines’ strategic initiatives and how this once-small and distinctive airline become what it is today. Southwest Airlines’ creative business practices, models and competitive advantages include reduced ticket prices, cutting away pointless services to boast faster airport turnaround times, and instilled a sense of intrinsic value in each employee.
The Link Between Business Model, Strategy, Competitive Advantage, and Profitability
Southwest Airlines has developed a plan that forms the basis of its business model to gain a competitive edge in the airline sector and maintain profitability in the face of rivalry. SA operates only one aircraft, the Boeing 737, to further cut costs and improve dependability (Hill et al., 2020). According to Hill et al. (2020), SA is well known for its fares, which are frequently about 30% less expensive than its main competitors. Additionally, effective methods to lower customer expenses have increased the sale of flights, boosting shareholder earnings. Finally, by facilitating training, maintenance, and inventory costs, SA has increased crew and flight planning efficiency while concentrating on revenue generation. Generally, their operational framework of low fares balances with the reduced structural expenses giving the firm a competitive advantage and enabling them to record greater profit even during an economic downturn.
Southwest Airlines’ Competencies, Resources and Capabilities
Southwest Airlines has demonstrated its ability to recognize critical strengths, cut operating expenses, increase resource efficiency, and master new capabilities that are not typically seen in other airlines. One of the SA’s distinctive competencies is the ability to fly from point‐to‐point unlike their competitors, who could need two or three layovers to get to their destination, thus reducing the travel time for clients (Hill et al., 2020). SA’s primary resource is the dedicated staff who are committed to working. Beginning with their initial interview, top management at Southwest Airlines instills essential qualities in each worker. SA stresses cooperative behavior and a positive outlook while hiring. There is evidence that teamwork is becoming more crucial in various occupations, and research has examined how the makeup affects outcomes in the workplace (Gander et al., 2020). In essence, SA determines whether the applicant will fit in with the team throughout the hiring process since the airline prides itself on being a customer-focused company. Generally, this reduces the need for technical inspectors, ticket counter agents, and baggage handlers.
Maintaining the Competitive Advantage for the Future
Southwest is devoted to being a safe and secure company, especially during the COVID-19 crisis, to maintain a competitive edge for the future. Passengers are expected to benefit from SA’s increased connectivity and quick travel times. Commute periods significantly shorter than the incubation time for infectious diseases are made possible by greater worldwide connection and accelerating globalization (Sun et al., 2021). SA is aspiring to ensure a meager incident rate almost entirely unrelated to pilot performance and adhere to COVID-19 guidelines. Additionally, SA prides itself on partnering to reduce turnover and ensure efficiency in years to come. Essentially, their motivated, flexible workforce increases productivity and decreases the need for additional personnel. Therefore, Southwest Airlines’ future dedication to its employees is demonstrated by the fact that they prioritized their staff over their aircraft. Generally, this commitment strengthens Southwest workers’ pride in being a family members rather than just a job.
Conclusion
Reduced ticket pricing, eliminating unnecessary services to boast speedier airport turnaround times, and instilling an inherent sense of value in each employee are just a few of Southwest Airlines’ innovative business methods, models, and competitive advantages. In essence, it is conceivable that Southwest Airlines will endure for a very long time in the airline sector. Despite the worldwide epidemic that has afflicted the United States, Southwest Airlines is still anticipated to turn a profit. Generally, to keep their personnel, secure their safety, and preserve their competitive edge for the future, one possibility that may present itself soon may include an expansion to overseas alliances.
References
Gander, F., Gaitzsch, I., & Ruch, W. (2020). The relationships of team role- and character strengths-balance with individual and team-level satisfaction and performance.Frontiers in Psychology, 11, 1-15.
Hill, C. W., Jones, G. R., & Schilling, M. A. (2020). Strategic management theory: An integrated approach (13th ed.). Cengage Learning.
Sun, X., Wandelt, S., Zheng, C., & Zhang, A. (2021). COVID-19 pandemic and air transportation: Successfully navigating the paper Hurricane.Journal of Air Transport Management, 94, 1-13.