Question 2
The organization's original strategy mainly focused on high-time performance that mostly differentiated Southwest Airlines from other companies. Also, the company's strategy focused on the need to establish a unique approach of providing air travel services that the rival firms would not be able to imitate. Also, the company also deployed thorough screening for a passenger that could aid in passenger identification coupled with limiting luggage, which could detrimentally affect the on-time performance ( McCartney, 2014) . The strategy differentiated Southwest Airlines from the rival firms that mainly rules out the government actions. Further, the strategy affected the freedom of the organization's staff to by compelling them to do whatever necessary to get the flights on schedule ( Sasser Jr., 2013) . The new strategy significantly affected the perception of the organization's performance, whereas the competitors relatively improved. Initially, the company recorded a steady growth and pushed for expansion as indicated by the increase in the number of Boeing planes it had ( Carey, 2015) . However, this could be attributed to a low-cost strategy that made the company competitive despite the recent linked to the terrorist attacks. Meaning that the organization is compatible with the low-cost focus that emphasized on a unique premise of simple operations at low prices, regarded as a discount airline revolution globally.
Question 2
Several competitors are rolling out new and cheap fare options to join the large airlines as they compete for passengers against discount competitors, such as Southwest Airlines (Schwieterman 2015). Therefore, the company is facing stiff competition from companies that offer cheap-seat options in the domestic as well as transatlantic markets (Carey, 2015). For instance, several European carriers have begun to adopt the strategy. Also, companies such as American Airlines Inc allow its fliers to carry on a single item that can fit under the seal. Also, other firms such as Delta are planning to place 40% of its domestic routes for full coverage (Wall & Carey, 2017). Further, Delta has noted that about half of travelers who consider the underlying economy for upgrades. There are certain firms, such as budget carriers that have gained dominant positions in the global markets. The rival firms have been successful due to the adoption of low-cost strategy by reducing their prices.
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References
Carey, S. (2015). Dark clouds loom for airlines even as their profits take off. The Wall Street Journal retrieved from http://www.wsj.com/articles/dark-clouds-loom-for-airlines-even-as-their-profits-take-off-1439941655.
McCartney, S. (2014). Southwest Airlines: free to fly, but also more baggage. The Wall Street Journal. Retrieved from http://www.wsj.com/articles/southwest-airlines-freer-to-fly-but-also-more-baggage-1412204720.
Sasser Jr., W.E. (2013). Southwest airlines: In a different world. Harvard Business School. Retrieved from https://www.hbs.edu/faculty/Pages/item.aspx?num=38699
Schwieterman, J. (2015). An airline investigation that misses the bus. The Wall Street Journal. Retrieved from http://www.wsj.com/articles/an-airline-investigation-that-misses-the-bus-1439939460.
Wall, R., & Carey, S. (2017). How Budget Carriers transformed the airline industry-in 14 charts. The Wall Street Journal. Retrieved from https://www.wsj.com/articles/how-budget-carriers-transformed-the-airline-industryin-14-charts-1503501624.
