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Using the case study and terms below for context, evaluate Southwest's operations strategy and explain how the organization seeks to gain a competitive advantage regarding
Using the case study and terms below for context, evaluate Southwest's operations strategy and explain how the organization seeks to gain a competitive advantage regarding sustainability. Case Study: Southwest Airlines: Competing with Low Cost Southwest Airlines is the only major U.S. airline that has been continuously profitable over the last several decades. Other airlines have had to collectively reduce costs by $18.6 billion, or 29 percent of their total operating expenses, to operate at the same level (cost per mile) as Southwest. High-cost airlines such as United and American Airlines face enormous pressure from low-fare carriers such as Southwest Airlines. A long-time industry consultant stated, "The industry is at a point where survival is questioned." In recent years, airlines have reduced capacity, cut routes, and increased fees for peripheral services like baggage and food. We have also seen mergers between Delta and Northwest and between United and Continental to reduce system-wide costs. 1. Competitive advantage: denotes a firm's ability to achieve market and financial superiority over its competitors. 2. Order qualifiers: basic customer expectations are generally considered the minimum performance level required to stay in business. 3. Order winners: goods and service features and performance characteristics that differentiate one customer
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