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Paper Topic:

Southwest Airlines-“What is Southwest Airline’s competitive strategy? What are the sources of its success? How does it make money in this business? What are the foundations of Southwest’s competitive advantage?”


This will discuss in details Southwest Airlines operations in America and how it copes with competition from its rivals that is the competitive strategy of the airline will be discussed in details . The will also analyze the foundations of this competitive strategy and how it has effectively responded to its rival firms in the airline industry . Further this will critically analyze the success of the Southwest Airline and how the airline earns it revenues

Southwest Airlines

This is an airline company which is situated in Dallas , Texas and it is

br not only reported to be the biggest airline in America but also an airline which offer its transport services at lower costs when compared to other airlines in America for example Delta Airline . The airline is said to be dominating the American local market that is in terms of passengers transported within the country annually . It is also reported to be among the top ten airlines in America whereby its revenue is said to considerable and large enough to sustain its operations . It is also among the top airlines in America and around the globe which has biggest fleet of aircraft . This airline company does not only limit itself to transporting passengers within America only but also it has plans of transporting passengers to nearly all destinations in the world by the year 2009 . It is also considered to be the most profitable airline company as reported on January 2007 by the Department of Transportation 's Bureau of Transportation Statistics (Southwest Airlines , 2007

Southwest Airline 's competitive strategy

The management of any company including that of Southwest Airlines must identify the way in which it will cope with its rivals and what it perceives as a basis for competitive advantage . The business strategy adopted by a firm is essentially a method for creating and sustaining a justifiable position in a particular market . Usually a firms profit depends on the nature of the strategy and on the inherent profitability of the industry in which it operates . Any company may perform poorly in a profitable industry if it employs unsuitable marketing strategies . A business competitive strategy requires the company to make a decision whether to compete across the entire market or only in certain segments of the industry and also whether to compete through low costs and prices or through offering differentiated product change . Southwest Airlines has chosen to adopt the strategy of competing in certain and specific segments of the market as it have focused in many states within America This has proved to be successful as it does not require a lot of funds The airline has also offered exclusive transport services to its customers such as comfort seats and cabin crews who are reported to be friendly to the customers

Business strategies are those that are adopted to strengthen the position of an organization . This strategy focuses on how each business unit will compete in the market . Southwest Airline has formulated business strategy that has...

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