In regards to Southwest Airlines and their strategy to serve

In regards to Southwest Airlines and their strategy to serve more major market areas, which is a bit of a shift in strategy for them. Analyze Southwest Airlines\' current strategy and this new strategy, and determine whether or not they will continue to be successful given this new strategy. Please cite sources.

Solution

Answer: The South west currently focuses on the concentrating only on the domestic U.S passenger market and creating efficiencies in it. The focus of the company’s operation is to provide better services and experience to its focus area only. The company differentiates itself from its competitors and has developed a business model which is based on efficient operations, low cost pricing, and customer experience and employee motivation. The new strategy of serving more major market area will dilute the focus of the company on its current markets which it serves. The company will also require distributing its resources to cater to the new markets it decides to serve. Though in the long term this may help the company to expand its customer base and revenues but it can also backfire if the company is not able to replicate its existing business model in the new markets. Therefore as the company does not has a prior experience of expansion, this new strategy may not be successful.