Question

Southwest Airlines' low-cost advantage results primarily from its ability to Multiple Choice Ο remain alert to the cost advantages of vertical integration. Ο use advanced aircraft technology and design. Ο pressure flight staff to turn around flights quickly. Ο O Outdo its rivals in performing value chain activities cost efficiently. Ο reduce handling and shipping weights by refusing to take on commercial cargo.

Answer 1

Southwest Airlines' low-cost strategy is due to its ability to outdo its rivals in performing value chain activities cost-efficiently. Southwest Airlines has always concentrated on reducing costs throughout its functions and thereby able to offer cheaper tickets to its customers. Southwest only uses a single type of aircraft and it reduces the cost of pilot and crew training and maintenance due to having multiple aircraft models. The airlines has retrofitted its airplane cabins with slimmer seats, installed winglets on its airplane wingtips to save fuel, added more fuel-efficient airplanes to its fleet and retired less efficient, older ones from its fleet.