Final answer:
Southwest Airlines follows a cost leadership strategy by focusing on cost reduction and efficiency. Factors contributing to their strategy include efficient operations, a point-to-point route system, and a strong company culture.
Step-by-step explanation:
Southwest Airlines follows a cost leadership strategy. They focus on cost reduction and efficiency to offer low fares to their customers. One of the main factors that contribute to their strategy is their efficient operations. Southwest Airlines has a quick turnaround time for their flights, which allows them to maximize the utilization of their aircraft and reduce costs.
Another factor is their point-to-point route system. By avoiding hub-and-spoke systems, Southwest can reduce connecting flight costs and offer more direct flights, attracting customers looking for convenience and time-saving.
Additionally, Southwest Airlines has a strong company culture that emphasizes teamwork and employee engagement. This contributes to higher productivity and cost savings.