Final answer:
The competitive priority emphasized most by Southwest Airlines is cost, supporting their position as a low-cost carrier through various operational efficiencies and competitive pricing strategies. Price wars and mergers within the airline industry impact competition and highlight the importance of cost control.
Step-by-step explanation:
The competitive priority most emphasized by Southwest Airlines is cost. Southwest Airlines has historically positioned itself as a low-cost carrier, focusing on providing affordable air travel.
This strategy is closely linked to their business model, which includes measures like using a single aircraft type to reduce maintenance costs, shorter turnaround times, and no assigned seating.
These operational efficiencies allow Southwest to offer competitive pricing, which is crucial in the airline industry where price wars are common as described in the scenario where a large airline slashes prices to eliminate competition from a start-up.
The airline industry, including Southwest, also exhibits concerns over reducing competition due to mergers, which can lead to a less competitive market and higher prices for consumers in the long run.