Question

Case C – Southwest Airlines in 2014: Culture, Values, and Operating Practices,

               text page C-340

              You should also check out http://www.southwest.com (Links to an external site.)Links to an external site.

1. List the five (5) most significant strengths and weaknesses of Southwest and the primary

     or support activities in which these strengths and weaknesses are found.

     Note: Limit yourself to five strengths and five weaknesses and provide a justification for

     your responses.   This does not mean there are five in each category, we just don't want to

     see more than the five most significant. We also do not want to see your full value chain

     analysis, just your appraisal of the strengths and weaknesses of Southwest Airlines.

2. What are the key elements of Southwest's culture? Is Southwest's culture a source of competitive advantage. Why or why not?

Answer 1

Solution 1

Strength:

1. Low turnaround time
2. Fuel saving costs due to hedging
3. High economies of scale
4. High capacity utilization
5. Lean management

Weakness :

1. Over depending on Boeing jet
2. Limited expansionary routes
3. Hyperlocal strategy
4. Lack of innovation in emerging markets
5. Excessive hierarchy of structure

Solution 2

Southwest airlines culture denotes employee first, appreciation and motivation which is top priority. However this js not comparative advantage because the peers and competitors have similar culture and values. Comparative advantage is only because of low cost anf low turnaround time.