MKTG3312
Pablo Parra-Ramirez
Southwest Airlines Case Study
10/28/08
1. a) Should Southwest save a few low-numbered boarding cards for its most frequent fliers? What is the key motivation for you opinion? What tradeoffs must Southwest consider in making this decision?
I believe that Southwest should not save a few low-numbered boarding cards for its most frequent fliers since, as Colleen Barret, Southwest president & COO, states: “one of our core values is egalitarianism”, which means that every customer should be treated as equals, no matter how frequently fly.
Southwest must consider in making this decision how this would affect their frequent fliers’ trust in the company. As they say on the case study, many of the frequent fliers develop a close relationship with their employees. By saving a few low-numbered boarding cards for its most frequent fliers they might be able to further enhance their relationship-building approach.
b) Should Southwest allow its most frequent fliers who have missed a flight to board the next available flight with an empty seat independent of fare class? What drives your decision?
Since Southwest stands firm on certain policies and practices such as treat every customer equally, by letting its most frequent fliers to jump on the next available empty seat independent of the fare class they would break its promises which would go against company’s policies.
2. What is Southwest airline value proposition? What are its sources of competitive advantage?
Southwest airlines have developed an overall strategy that i ...