Excerpt from Dissertation:
proper analysis of the Southwest Airlines. By evaluating the SWOT analysis with the Southwest Air travel it is concluded that the best method for the company may be the low cost management strategy because the competitive edge that South west Airlines loves is their low working cost. The business has to strategy its future techniques keeping in mind the cost-cutting trend; this will help the company to support its position. The recommendation for the company is always to continue the provision of service for low price and improve employee management romantic relationship for a better and synchronised implementation with the strategies.
South west Airlines may be the largest flight company with the lowest cost within the United States. It had been established in 1967 and since then it has continued the strategy of cost lessening efficiently. With this paper, primary is within the specific approach of the South west Airlines. Through the Porter generic strategies, South west Airlines provides chosen affordable leadership technique (Gittell, 2005). A thorough analyze of the weaknesses and strengths of the organization will ensure that its choice of strategic strategy is correct. Among the list of various approaches, the most suitable strategy for Southwest Flight companies is the affordable strategy and it is evident from the SWOT examination.
MAIN HUMAN BODY:
The following are a number of the internal strengths and weaknesses and exterior opportunities and threats confronted by the South west Airlines.
Strengths: The major durability is their low operating cost. Technical expertise, financial position, good customer service, security record, development, good marketing campaign and use of proper equipment’s are some of the fundamental strengthening parts of the company.
Weak points: These are some of the weaknesses which the company is facing at present; no appropriate airport lay, no suitcase transfer outside the house Southwest, zero indirect booking of flights available, union system of the employees, single kind of aircraft my spouse and i. e. Boeing 737. Overcoming these problems is possible through proper proper planning (Hunger Wheelen, 2011).
Opportunities: Top to bottom integration, long lasting industry growth, growth opportunities for the little urban international airports, high accessibility to potential marketplaces, new technology, internet marketing and international markets are some of the major and golden opportunities that Southwest airlines can acquire.
Threats: A lot of threats that are prevailing in the modern scenario for the Southwest Airlines include increase in energy price, general economic downturn, and downfall of tourism because of terrorism, increasing number of competitors in the market, insufficient qualified personnel, high- acceleration rails, and government rules.
The company must use it is strengths to overcome it is weaknesses. Likewise the company should avail the opportunities, in this way the threats will instantly decline. To do this, Southwest Airlines have to adopt a strategy that can attain its target in a very methodical manner. In the light of the above SWOT analysis, the niche approach is the best technique for the South west Airlines to optimize profit inside the minimized price.
Niche approach:
This strategy focuses on a specific target on which the Southwest Air carriers works and excel on its own. Niche marketing approach always chooses the specified option of the marketplace environment. Southwest Airlines need to take care while choosing the prospect because a lot of opportunities will be the environmental traps that may damage the Freebie southwest Airlines very good will (Thompson Strickland, 2004).
Value Creation: The initial important point while establishing niche marketing approach is to make value among the customers sp that they can always be loyal with the company and don’t go for the packages offered by the competitors.
With regards to value creation, Southwest Flight companies must job over its uniqueness because this is the simply thing that can help the company to sustain its position effectively in the market.
Low cost leadership strategy:
This plan focuses on the management methods to lower the expense in order to give the product to its clients at lowest possible value with good quality. Such a technique makes the managing more focused regarding the internal issues of the South west Airlines. So affordable cost command strategy improve the value with the Southwest Flight companies in the eye of the buyer and the business get larger share on the market as compare to its rivals. Southwest Airlines can give low priced benefit to its customers by delivering the services at cheap and employing the low expense suppliers (Drucker Drucker, 1999). Another sort of the company which has targeted this plan and has been successful in capturing buyer as well as business is “Wal-Mart. ” Another reason behind the successful leadership of Wal-Mart is their relationship together with the suppliers and strong capacity to bargain with them. A powerful control over the logistics and in-bound items is must in order to get low priced benefit.
Know your customers
Another point that must be kept in mind although making up the strategy is the fact if there is any kind of requirement to create up the technique. Knowing the customer is necessary ahead of setting up the strategies mainly because sometimes all of us implement this sort of strategies that customers usually do not care about. Featuring customers the facilities that they do not take the time about is usually useless since such providers increase the costs and we do not get the higher benefit from the consumers.
Southwest Flight companies has adopted the frill strategy that includes lowest transportation charges and timely timetable. This present attracts the purchasers largely because they are more concerned regarding the fares as out-do any other facilities of meals, seats or luggage moves.
Thus, it could be said that simply such approach help to increase the significance of the South west Airlines that are according to the customers need and in addition they can be expense minimizing too (Grubbs-West, 2005).
Blue Marine Strategy:
Green ocean technique came following your deep analyze of a hundred and fifty strategies of industrial sectors. The decision creators studied pertaining to 10 years about the executed strategies of a lot more than 30 industrial sectors. Under this strategy, the Southwest Airlines seeks to acquire good market position and cost reducing ways too. In order to get a powerful position not necessarily compulsory to suppress the competition from the market but to obtain such a position where the opponents cannot struck the company’s perception in the customers’ minds. This tactic does not surface finish the competitive market of the Southwest Airlines but it supplies such strategies that create new market space. The tools that the blue marine strategy uses help to achieve a sustainable position in the new along with existing marketplaces. These strategies also choose the concept of creativity because only the potency of innovation can make a safe put in place the market and may save a business from the competition of its competitors.
You will find seven equipment for the blue sea strategy which include strategy fabric, value contour, four actions framework, 6 paths, purchaser experience pattern, buyer electricity map and blue water idea index. The blue ocean technique not only includes the business of the strategy but likewise the way to execute it inside the most effective method. The three simple concepts which the blue ocean technique is based are value development, tipping point leadership and fair method (Muse, 2002). The construction of the blue ocean approach not only really helps to enhance the efficiency of the Southwest Airlines to improve its value but it also help the company’s personnel to implement it very easily and connect the idea for the staff and customers easily.
The approach canvas: The strategy fabric is the standard framework from the blue ocean strategy. It is horizontal axis shows the competing elements for the Southwest Air carriers that exist in the modern scenario while vertical axis shows the offers of Southwest Air carriers that consumers are experiencing in the competitive environment. The constituent element of the strategy canvas is definitely the value shape. It gives the graphical rendering of all the competitive factors which can be prevailing available in the market.
The technique canvas helps you to capture the marketplace space. That shows in which the competitors are currently focusing and determine the next step that the Southwest Airlines is going to take in response of the competitors. Furthermore, it helps the corporation to focus on elements as well except the opponents like the potential clients that can boost the value if perhaps they obtain a little bit of focus.
Objectives of blue sea strategy: To be able to increase the business, southwest Airlines try its level best to capture optimum customers. For this specific purpose, the company offer maximum deals to their customers to make these people loyal with all the company. Within a highly competitive market, the danger to acquire value from your customer against the offerings improves.
Southwest Airlines, in order to get a secure place in industry must focus on other factors too besides targeted customers. The organization needs to put into practice such strategies that are equally attractive for the customers and also non-customers. Such strategies bring up new customers and Southwest Airline will get a fresh target market that may be more powerfulk than the past one.
Just before offering the blue water opportunities to the noncustomers, the company must be sure whether the give will create an actual demand another problem is that it can often be just
