Question

1. Because southwest competes primarily in short-haul routes at low fares, should traditional carriers such as American and delta be considered primary competitors? What about other transportation providers, such as Amtrak and Greyhound?

2. Should southwest partner with other low-cost and or regional carries to provide expanded service for its customers? Why or why not?

3. Major airlines have collected large sums from fees for checked bags. Is Southwest’s strategic decision to offer bags fly free a good move? Why or why not?

Answer 1

The Answer to Q 1.

No. Traditional carriers such as American Airlines and Delta Airlines should not be considered as the primary competitors of Southwest Airlines. Primary competitors for Southwest are Spirit Airlines, Alaska Air and United Airlines. Amtrak and Greyhound should not be considered as a primary competitor as these transportation providers target different individuals and their market segment is different, though it is not mutually exclusive. The majority target audience is different for these transportation service providers.

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The Answer to Q 2.

Southwest should partner with other low-cost or regional carriers to expand its reach in terms of destinations and cater more customers. By partnering with other airlines, Southwest can increase its customer base and acquire new customers. As Southwest focuses on the low-cost strategy, it needs higher volume to maintain its low-cost competitive advantage. The partnership can add this mass to the airline.

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The Answer to Q 3.

Yes. To offer bags fly free is a good strategic move. As Southwest serves to the short-haul routes, people can use the alternative transportation mode to save cost. Offering free baggage will attract more customers. Most people for such short routes do not carry more baggage, so it may not affect that much to the airline’s profit. But charging fees can reduce the number of travelers, which may affect the profit of Southwest Airlines.