Remson Mark C.

Macawile Disruptive Innovation-Assignment #2

MIB 2017 - LT2 Prof. Toby Canto
July 24, 2017

What was the strategy of Southwest Airlines?

Southwest airlines, in comparison with other US legacy airline competitor, provided inferior services (at
start of company operation) like serving no meals onboard. This helped them lower the cost to up to 45%
of industry standard. They also target small niche market which are the bus passengers or those who are
driving their cars to get to a similar destination that southwest airlines offer. Business model consists of
lowering cost by providing related activities such as fast turnaround time and simple boarding process.
The model also consists of enabling technology like the use of only one carrier air craft which is the Boeing
727 which allows for longer distance due to increased fuel storage and efficiency. They also provided
convenience to passengers by having less likely to suffer from delays with the use of secondary airport as
an aid. Recently added features are no extra charge for cancellation, international flights, onboard wi-fi,
and priority boarding.

Southwest Airlines strategy may also be seen internally. Aside from profitability and low costs, it has a
company culture and values that focuses on family, fun, love, hard work, individuality, legendary service,
egalitarianism, common sense/good judgement, simplicity and altruism. It also built a good relationship
with its employee and even reach to the extent pf partnering with unions to consider the best possible
benefit.