Southwest Airlines and Its Marketing Strategy

Southwest Airlines and its Marketing Strategy

By T. Scott

Principles of Marketing

Introduction:

Southwest Airlines is recognized as a leader and “most admired company” in the Airline Industry. At a time when many airlines have struggled to record profits in the wake of the September 11th Attacks and the most recent Economic Crisis, Southwest has managed to earn a profit and flourish. In fact, Southwest has managed to record a profit every year for the last 37 consecutive years. The airline operates nearly 3,300 flights per day making it the number U.S. carrier based on the volume of domestic passengers carried. The Airline operates in 69 cities covering 35 states. Their fleet is composed exclusively of 541 Boeing 737 jets with an average age of 10.5 years. Southwest Airlines operates a point-to-point passenger flights in order to maintain maximum efficiency and effectiveness.

Overall Business Strategy:

Southwest Airlines’s business strategy is based on maintaining a competitive advantage in four key areas:

1. Southwest has lower operational costs relative to its competitors and they are able to achieve greater operational efficiency.

2. The Airline consistently achieves and maintains high ratings in customer satisfaction relative to its competitors.

3. Southwest’s business strategy is based on an “award winning” Employee/Organizational Culture which fosters a positive work environment for its employees.

4. The Airline competes in an industry where profits are tight by maintaining a competitive advantage across various operational dimensions by which all airlines are measured.

In order to maintain lower its costs and maximize its efficiency, Southwest Airlines was the first airline in the industry to fly one type of jet (the Boeing 737). Flying one type of aircraft allows Southwest to eliminate redundancies in having to provide instruction and training to employees in operating and maintaining various types of aircraft. For...