Southwest Airlines' Operational Strategy and Competitive Advantage in Sustainability

Southwest case study
Name
University
Course Code
Instructor
Month, Year
SOUTHWEST CASE STUDY
Southwest Airlines' operational strategy and competitive advantage in Sustainability
Operations management is important because it helps in monitoring costs, delivery of services, and management of services. Whenever a person boards a plane, the flight attendants will go through the routine safety presentation to passengers. Sometimes these presentations are boring, depending on the staff presenting them. One of the best things about Southwest Airlines is its friendly employees and affordable air tickets. However, it is important to note that the success of this company goes beyond pricing and recruitment of employees. Some factors that have contributed to the success of this Airline include low operating costs, commitment to workers, and great flexibility. Low-cost, basic air travel services are the main goal of the company's business model (Ren, 2020). The organization only offers a single ticket type and has a straightforward fare structure. Additionally, Southwest utilizes a point-to-point routing strategy instead of a hub-and-spoke strategy used by most airlines; this enables the business to steer clear of the frequent disruptions and cancellations experienced during connecting flights.
Enterprise has developed to be one of the top prosperous airline companies in the nation, thanks to its emphasis on efficiency and simplicity. Southwest remains the only significant US travel company to have turned a profit annually for the previous 40 years (Ren, 2020). The continuous profit is an impressive accomplishment in a sector that has experienced many highs and lows. The excellence at Southwest is evidence of the effectiveness of a well-implemented organizational design. Organisation seems capable of offering their clients reasonable fares and excellent service while keeping things straightforward and effective (Ren, 2020).
According to Kingsley (2019), one of the main competitive advantages of Southwest Airlines is its focus on employees. It is important to note that employee-focused companies create an atmosphere where workers can thrive and remain successful. Part of this is attributed to employing the right people. One of the interesting bits about the company is that there is a YouTube channel where employees talk about its culture. Using words like family means that employees are supported in the company and feel valued. When employees feel supported by the management, they will be motivated to work and achieve the set goals. Ren (2020) notes that Southwest Airlines values this philosophy. This is why these employees are known for being cheerful, friendly, and helpful toward their customers.
Southwest has maintained its position as a top low-cost carrier in the market. Ren (2020) notes that the organization derives its competitive advantage from its low-cost business model, excellent customer service and a fast-mover benefit among low-cost carriers. By 2030, the company has plans to replace 10% of its jet fuel consumption with sustainable aviation fuel (Kingsley, 2019). While the company has been making several plans to attain this goal, it has partnered with sustainable fuels technology firm Velocys and its subsidiary Velocys Renewables. It is important to note that this partnership covers the purchase of 219 million gallons of SAF at a fixed price (Ren, 2020). This is supposed to start as early as 2026 since this product is carbon negative, just like SAF.
Analyze how operation management activities affect the customer experience. Select two operation management challenges and provide the solutions for confronting them.
The activities of the organization are directed towards improving the experience of customers. Further, Southwest also focuses on ensuring employees are motivated and inspired to perform their duties as required. When this is maintained, it results in quality customer service and experience. By maintaining a culture where customers and employees feel valued, the company has been able to differentiate its services from what its competitors provide. Flight planning and aircraft maintenance are two operation leadership issues that impact customers' experience. To address these issues, Southwest employs a computer algorithm that considers variables like weather state, airport crowding, and aircraft usage. Additionally, the company operates its maintenance post, allowing it to keep costs under control and guarantee that the aircraft is well maintained to industry standards (Ren, 2020).
To ensure employees are able to offer exceptional services to their customers, the company incurs a lot of cost in training programs and other incentive programs. In the long run, the company uses a lot of money to ensure these programs run effectively. To deal with the challenge, the company should consider implementing other methods of keeping employees motivated. For example, they can give them more off days, but management will need to increase the number of employees and give them fewer shifts. This will help save costs while keeping employees motivated to provide excellent customer service.
The data indicate that Southwest Airlines is a well-run airline with effective operations. The company's computer-controlled f...