Southwest Airlines Successful Marketing Strategies

One means to developing organizational strategies is to focus on the directions the organization can take in order to grow (Peter and Donnelly, 2013 p. 12). There are three organizational strategy approaches that are discussed by Peter and Donnelly (2013): (1) strategies based on products and markets, (2) strategies based on competitive advantage, and (3) strategies based on value (p. 12).  

Southwest Airlines use to implement a cost leadership strategy; a firm would focus on being the low-cost company in its industry (Peter and Donnelly, 2013 p. 14), however according to Bachman (2014), “It’s no longer the industry’s low-cost leader”(para. 2).

Bachman (2014) noted:

The true low-cost airline leaders are not Southwest but the ultrabudget Spirit Airlines and Allegiant Travel, carriers that squeeze more seats onto their planes by not letting seats recline. (para. 5)

         Southwest is continuing to seek new ways to expand it business. Their recent strategies encompass market development and product development. Peter and Donnelly (2013) describe market development strategy as, “Pursuing growth through market development, an organization would seek to find new customers for its present products” (pg. 13).  The company is seeking expansion into other countries looking to offer flights to Cozumel and Cancun Mexico as well as other central and South American countries.

          The product development strategy is when, “an organization seeks new things to do” Peter and Donnelly (pg 14). In the case of Southwest, it is probably rumor but a Southwest employee John Doe, expects for Southwest to repaint their entire fleet of aircraft for re branding. On Southwest Airlines (2014) website they explain that:

We’re charting new territory! Southwest will soon be operating flights to international destinations in the Caribbean. We’ve highlighted key differences between traveling domestically vs. internationally on Southwest, so you’ll have the full scoop before you book and fly. (n.p.) 

           New airfares and rebranding (painting of Southwest aircraft) are all apart of Southwest Airlines product development strategy.  According to Bachman (2014), “Southwest Airlines rolled out a corporate rebranding and new paint jobs for its fleet on Sept. 8, part of a freshening up to coincide with its integration with AirTran Airways-the largest acquisition in Southwest’s history-and the launch of international flights” (para. 1).

             In all Southwest Airlines uses both the market development strategy and product development strategies to meet the needs of the growing international business and commercial aircraft market. These two strategic approaches shall prove very successful in providing a competitive advantage for Southwest Airlines.   

Resources:

Bachman, J. (2014, September 11). Southwest Hangs Up Its Low-Cost Jersey.Bloomberg Businessweek. Retrieved October 23, 2014 from http://www.businessweek.com/articles/2014-09-11/southwest-airlines-no-longer-the-low-cost-leader

Peter, J. P., & Donnelly, J. H. (2013). Marketing management: Knowledge and skills (11th ed.). New York, NY: McGraw-Hill.

Southwest Airlines. (2014). International Travel. Retrieved October 23, 2014 from http://www.southwest.com/html/air/intl/?clk=GSUBNAV-AIR-INTLTRVL