Southwest Airlines Key Strategies : Business Level Strategy Essay
Business Level strategy.
Business level strategy is a process in which an organization focuses its core competencies on satisfying their customers, it details actions that should be taken to provide maximum value to the customers and gain competitive advantage over the firm’s competitors within an industry.
Southwest Airlines employs a cost leadership business strategy which focuses on competing for a wide range of customers based on price of the goods or service being offered. Southwest Airlines is truly loyal to this strategy and that can be seen in the company’s low cost strategy initiative. Southwest Airlines has been able to maintain its pricing strategy by controlling several internal efficiencies such as:
Operating a point to point system, this has helped Southwest Airlines maximize operational efficiency and stay more cost effective, by keeping their plane in the air the company is able to provide more flights.
Secondary airport, Southwest Airlines mainly fly to secondary airports as a way of reducing travel delays and turnaround time. Doing this has also helped the airline cut back on its airport operations.
Consistent aircraft, this is probably one of the biggest factors in Southwest Airlines success story as a cost leader. The airline only operates a fleet of Boeing 737 jets And this significantly affect the way the airline runs its operations. This has helped the airline cut major cost on maintenance and training of pilots and…