Southwest Airlines - Essay Example

The firm also offers amenities to its customers in order to meet their entertainment needs. In addition, Southwest Airlines serves their customers by providing Business Select, Wifi, Mobile Access, and EarlyBird Check-In facilities. 2. According to Starcevich, effective employment of manpower resources assists the Southwest Airlines to offer excellent services to its customers. It is identified that the organization’s management adopts a liberal approach to its managers, employees, unions, and suppliers.

Hence, sincere and efficient managerial persons and their coordination found to be the most powerful competence that offers many competitive advantages to Southwest Airlines. The top management of the firm has made arrangements for listening to low level employees directly. The company keeps quickest turnaround time and it ensures the accuracy of flight times. The firm’s management gives emphasis on customer feedback on the belief that it would assist the company to make necessary strategic modifications.

Moreover, the concern concentrates only on certain regions and it helps the company to provide improved services to the customers. 3. Low cost is the Southwest’s principal business-level strategy; company’s unique business model helps the management to practice this strategy successfully. The low level passenger charges assist the company to achieve customer loyalty. Customers today wish to get quality services at lower costs; hence, Southwest Airlines will be potential service provider for US people.

It is observed that the Southwest Airlines does not offer much luxury facilities so as to maintain the name “low- cost carrier”. However, it is advisable for the organization to offer royal facilities also as it would aid the firm to meet the interests of rich class people; this strategic change may improve the firm’s core competence and thereby competitive position. 4. Southwest’s structure and culture accurately match with its strategy in many ways. As discussed above, the company deals with domestic operations and it charges only low prices for its services.

A well coordinated management team and effective segment concentrated operations help the company to provide better services to its customer groups without changing the charge rates. In order to improve the company’s strategic operation, it is recommendable for the Southwest Airlines to increase its group of customers. While the firm serves increased groups of customers, it can obtain the economies of large scale operations which in turn would enable the company to offer more economical benefits to its customers.

Under this structure, Southwest Airlines faces some difficulties also. Some specific strategic features of the organization often become a barrier to its acquisition programs. 5. The Southwest Airlines deals with about three top domains. The strategic and managerial effectiveness assists the organization to operate in these areas successfully. As we discussed, the firm pursuits a segment focused corporate-level strategy in order to deal with different domains effectively. When the company focuses on specific business areas, the management gets up-to-date market information regarding those segments and it enables the company to form timely business strategies.

Similarly, the market segmentation aids the company management to keep close contact with customer