Southwest airline Essay Example | Topics and Well Written Essays - 500 words

Southwest airline - Essay Example In general terms, cost leadership can be described as operating at the lowest cost in an industry. Cost leadership has been an effective generic strategy for the Southwest Airlines over the last two decades. The company is able to produce services at comparatively low cost  to  that of its competitors. As a result, the firm generates high profits since it produces at low cost and sells at the established market prices. In this regard, the firm has been able to diversify its services to various location through the aid of modern technology and experienced workforce. In essence, the many years of existences facilitates production at low cost and selling at a considerable high profit. Moreover, the diversity of services and the experience of being in the industry for many years offers the company a platform for differentiation (Witcher & Chau, 2010). For instance, the company has established structures that facilitates efficient service delivery to customers of varied financial levels. In essence, the approach employed to handle customers ensures that everyone enjoy the value of money spent. An analysis of the company’s financial base and the total market share shows that the company has sufficient resources for differentiation. In addition, the resources that the company has so far can maintain an effective differentiation strategy. The experienced workforce, high technology equipment, and huge capital reserves depict that the company can be able to maintain its differentiation strategy for long. The firm should introduce another generic strategy to reinforce its efforts for generating sufficient profits and diversifying the market share. In this regard, the company can employee  the  focus  generic  strategy in marketing its services. Benoliel & Cashdan (2006) argue that the focus strategy enhances that the needs of a particular market segment are comprehensively covered. In this regard,