1. Why has Southwest's business model and strategies changed over time?
2. In what ways is Southwest trying to improve its competitive advantage in 2011?
Southwest Airlines has long been the most profitable U.S. airline, despite that its fares have been 25% or more below those of its rivals. Since its inception, Southwest Airlines focused on developing an operating structure that lowers the cost of inputs and the cost of converting inputs into outputs, which are on-time flights that satisfy customers. Southwest works to streamline and simplify all of its operating procedures in order to improve efficiency. With coordination between its employees, motivation, and benefits, Southwest operates with a leaner and simplified procedures. In 2011, Southwest purchased JetBlue, its closest low-cost competitor, to expand its national route structure, and both these airlines are consistently rated as the highest in customer satisfaction.