Research Paper on:
Southwest Airlines and the Low Cost Strategy

Unformatted Sample Text from the Research Paper:
the most successful airlines in the US, with an almost constant history of profitability, even during years of recession. There are only a limited number of generic strategies a firm  may pursue; the four generic strategies are cost leadership, differentiation, niche focus and first mover advantage1. Southwest Airlines may be argued as a firm whose main competitive advantage is a  cost advantage, but this does not mean that competitive advantages from other types of strategies cannot be observed. Looking at the way that Southwest Airlines compete, it is  possible to see how the firm developed and maintain this strategy adopted and the effectiveness of the strategies. This will be examined by using a SWOT analysis framework to consider  the strengths, weaknesses, opportunities and threats faced by the firm, which can be used to determined the suitability of the firms competitive advantages in the current environment as well as  to look at the way in which the firm may need to look to the future, building on strengths and opportunities and reducing or mitigating weaknesses or threats. 2. Assessment of  Southwest Airlines The airline started with a clear idea; Rollin King and Herb Kelleher; the founders had a vision to set up an airline which offered the lowest possible fares  and would get people to their desired destinations. The idea was that if could be achieved, at the same time as making sure passengers had a good time on a  journey that were likely to come back and fly again with them (Southwest, 2011). This idea was the foundation of the company and dictated may of the strategies that have  lead to the firm seeking cost advantages. 2.1 SWOT Analysis A SWOT analysis looks at the strengths, weaknesses, opportunities and threats which can help with consideration of the way the