Name: Gisell Coellar Date: 23/02/92 Southwest Airlines

Southwest Airlines provides short haul, high frequency, point-to-point, low-fare services to and from 58 cities across the United States. The company is known for its low-cost fares and superior customer service in the airline industry. It was founded in Texas, it is a domestic airline with high quality policies, and it has problems regarding the place because there were already two Airlines settled in the market, they were called the underdogs. Southwest's corporate level is to focus on obtaining more of the lowfare market of the airline industry rather than to enter into other aspects of the airline industry. The business level strategy is to continue focusing on the current customer market, that which is looking for a low-cost airline to get them where they want to go at a reasonable price, allowing him to capture 90% market share of "low cost". Southwest Airlines found the way to differentiate themselves by creating an outstanding marketing strategy which guaranteed their success. The company strategy was to make the flight a fun experience for the customers so their personnel have to be genuinely friendly and willing to help. The personnel played games during the flight and they did not assign seats to passengers. In this way, the company reinforced the loyalty of their customers. The company has some weaknesses, for example, the poor short-term liquidity situation, having only one established alliance, not affiliation to major reservation systems and they use a single type of aircraft. It also build up their employees loyalty and develop a strong commitment by running a generous stock that allowed employees to possess about 10% of the shares of the airline. Threats to Southwest include the increasing jet fuel costs, uncertainty in demand, and an increase in competition. In conclusion, services are variable, inseparable, intangible and perishable. These unique characteristics impose challenges for service firms to overcome. There are different strategies to beat these characteristics. Services are variable by nature as different people of same designation deliver services of different types and same person provide different types of services at different times. This problem can be overcome by training of employees and customers. Inseparability of production and consumption

makes consumer part of service process so their active participation, employees enthusiasm, easy techniques make effective and efficient process. I think Southwest ought to expand and to make the choice of having a route segment between Detroit and Phoenix. Because there is a great demand for this route they havent covered yet. Besides, they also need to meet customers necessities regarding the demand and availability of planes or lose potential clients.