Three Important Factors facing Southwest Airlines on the other 4 c's.

What are the 3 most important factors facing your firm on the other 4 c’s?

Competition

When it comes to Competition the three most important factors facing my firm are the competition from other low cost airlines means they have seen little market share growth, Competitors have an international presence, while Southwest is mostly domestic, and Southwest has experienced issues with their internet services that other companies haven’t experienced.  While Southwest airlines has the largest market share in their chosen segment stronger competition is slowing their growth and if the trend continues Southwest may even start losing market share.  I believe this is happening because of the international presence that the competitors have that Southwest doesn’t.  Finally, during the crisis Southwest faced when their operating system failed the competitors were quick to take advantage, and if that ever happens again it could ruin the company.

Company

When it comes to Company the three most important factors are the continued growth of their domestic network, how their brand appeal is being affected by online services, and that increasing operating costs will push Southwest’s fares to increase.  Which could affect the number of customers that use their airline.  Their domestic network is thriving, but in contrast they have a very small international presence.  This is a major concern because being dependent on one sole thing is never a good idea when running a business.  If the American market begins to dwindle it could spell trouble for Southwest.  Their brand appeal is being affected by its online services because on July 20, 2016 the company experienced an extensive system-wide operational meltdown which left the company to handle customer, employee, and collaborator complaints.  It took them many days to return to normal operations.  If something like that were to ever happen again their brand could be irreparably harmed and cause the company to fail.  The final important factor is that operating costs for Southwest airlines is increasing and if it gets too high then it may cause them to adjust their prices.  If that happens then their reputation for being the lowest cost for the greatest value could disappear, and cause customers to choose competing airline services.

Collaborators

Unlike all the other sections it is my belief that collaborators only has one important factor and that is its rapids rewards program.  Through that program they are partnered with credit cards, car rental agencies, hotels, restaurants, and many other industries.  So for Southwest to continue to succeed and appeal to collaborator investment they must continue to make the program attractive to current and future customers.

Context

When it comes to context the three most important factors are Transferancy, Customer Service, and Customer Perception.  Transferancy is important because it is their policy that has helped them succeed the most.  By removing hidden charges and having greater transparency than competitors they have been able to maintain a larger portion of the market share of their industry.  The second factor is their customer service.  They have developed and maintained more caring relationships with their customers than any of their competitors.  Their customer service skills are also what allowed them to survive their system outage crisis.  Which leads to the final point of Customer Perception.  Customers perceive Southwest Airlines as the most honest, caring, and affordable airline.  From the heart that is their logo to their policy of Transferancy it all shows customers that they truly care about them.  Maintaining this context is and should always remain a key factor for my company because with the customer’s goodwill they can survive and thrive in any situation.