Abstract

The caselet discusses how Southwest Airlines (SWA) achieved a cost advantage through certain efficient operations. It takes a look at the various innovative strategies adopted by the company that have set it apart from its competitors and have also helped it gain a competitive advantage. It explains how the company managed to offer services to its customers at competitive prices by effectively implementing ‘quick turnarounds’.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Southwest Airlines’ competitive advantage
• How efficient operations can impact the pricing of services
• Quick turnarounds - crucial element of SWA’s success
• and The importance of coordination between employees in services organizations.

Keywords

Southwest Airlines, lowest fares, competitive advantage, point-to-point model, quick turnarounds, organizational culture, fleet of aircraft