Sevilla, Ronver
Simon, Margaux
Soriano, Aaron
Soriano, Loumarie
Sulam, Claire Anne
Syson, Alyanna

4A2
“Enhancing Service at Southwest Airlines”

1. What is Southwest’s strategy? (What is the basis on which Southwest builds its competitive advantage?) * Low Cost – Southwest Airlines has a strategic route management which makes its operation costs low. The savings it derives from such low cost operations are passed on to its customers. Aside from that, its no meals, no seating assignment policies makes costs of service low. * Online ticket reservation – By being the pioneer in online ticketing system, Southwest Airlines can tap a larger market. “Online Presence”, especially in today’s changing environment, is an important aspect of achieving a competitive advantage. * “No Frills” strategy – No first class service, no seating assignment and no meals creates convenience to both Southwest Airlines and its customers. Simple service and smooth flow of operations are strategies that Southwest Airlines aims to provide. * Harmonious and Enthusiastic environment – happy people, jokes nd singing flight stewardess creates light and friendly atmosphere

2. Identify the areas where they excel. * Customer Service
Southwest Airlines' staff members are excellent at making people comfortable. From the way their flight attendants interact with passengers as they board, to the way they provide the pre-flight seatbelt brief, to the often heard song that a flight attendant might sing as the plane is landing, they have the ability to minimize the stress of flying.

* Employer-Employee Relationship

Southwest is committed to learning, developing, and empowering their employees. It has a positive organizational culture that encourages a positive and warm employee culture. The company ensures that Southwest employees are aware of their value. The employees' personal well being is a most important matter for Southwest Airlines leadership - the entire company places significant importance on every single job. All employees are highly valued and respected as individuals.

* Pricing Strategy - Low Fare Approach

Basically, Southwest Airlines' pricing strategy has been to offer the lowest possible fares. Southwest Airlines' basic plan was to offer low fares for no-frills flights. They provide shorter trip, offer one seating class, and use smaller planes which has resulted in lower prices and more customers. Southwest did not offer much in the way of meals. Furthermore, it did not offer lounges for business passengers in airport terminals nor assigned seating so the passengers could not pick their seats. This has succeeded because so many airline passengers have been looking for low fares rather than for the perks that were once offered by many airlines instead of low fares.

3. What Problems do you see in the case?
While Southwest Airlines has proved its apparently doubtful profits and unique services, it has also shown some setbacks in its strategies. Perhaps, one of the major problems in the case is its “no assigned seats” policy. Most likely than not, this could discourage a number of customers to patronize it as they know how large the demand would be given its low price and they would definitely avert from competing for the best seat via a first-come-first-served basis. Another disadvantage is its staggeringly low-priced tickets. As a law in economics states, “suppliers are willing to supply more products for sale on the market with higher prices as a way of increasing profits”, although low cost equates a higher demand, it is also worthwhile to consider the middle-upper-class market as generally, this market is willing to pay more so long as the price is justified by the quality of service. Another problem that the group has considered is its seemingly practically impractical joke, “emergency landing.” Because this is a matter about life and death situation, it is not impossible for a customer to get tensed and worst is to have a heart attack upon hearing such announcement. Furthermore, although its “fun” culture is what sets it apart from other airlines, some people might just not like it or feel uncomfortable or unease to have such environment while travelling. Generally, these people are presumed to be the businessmen and professionals who frequently travel which could have been Southwest’s customers at some point or another. Notwithstanding the problems mentioned, Southwest Airlines still proved to be a commendable company nonetheless.