Question 1: What are some of the main elements of Southwest Airlines operations strategy? Explain why all those different elements make sense and the way they fit together.
Untapped market - Offer point-to-point flights with many time choices for short distances, able to use less luxurious facilities, build a system of high utilization.
Cost controlled to the minimum - Able to provide a low-fare airline and best-on-time performance, win large customer base, increase profitability rather than market share.
Employee Culture - People-oriented working environment, emphasize stability and humor, make every employee focused on high-quality customer services, be a leader in customer satisfaction, win high customer loyalty, make low-fare strategy sustainable.
Question 2: Do a little internet research to find out if there are any airlines in China that have emulated their strategy. What has been their success? Why?
In China, there also are several airlines whose business strategy is similar to Southwest Airline’s, such as Spring Airline (China-sss) and Juneyao Airline.
Taking the Spring Airline for example, its success was benefit from its low-price strategy which attracts many low-end passengers. The Spring Airline declared that it makes efforts to minimize the cost for passengers to buy tickets in low-price.
Firstly, it cut cost by ways such as never offering free meals and beverages for passengers, narrower space but more seats, its scheduled flights mostly on the early morning or at mid-night.
Secondly, the low-end transportation market in China was very large but had been neglected for a long time by other airlines. The Spring Airline did grab many customers from the railway market and other airlines.
Question 3: Why are they so fixed on the “Turnaround time” performance? Use the data from the case and briefly calculate: If we add Turnaround time of Southwest Airlines by one minute, how many more aircrafts are needed?
Better “Turnaround time”...