In this essay, the author makes an attempt to understand the operational aspect of the cost leadership strategy followed by Southwest Airlines. The paper tries to examine the strategies the company uses to increase the overall efficiency of its employees by designing tasks in a different manner…
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Southwest Airlines is an example for all of us because it has made tremendous progress by using techniques to improve upon its operations management. It is using its operations management to achieve competitive edge over its competitors. The company uses techniques like e ticketing, faster between flight services, increasing number of seats in planes, flying shorter routes, efficient service of planes, more flight hours by pilots, unique hiring method, and preparation before starting new flights, and less waiting time for planes in order to achieve competitive edge over other airlines.E-Ticketing Southwest Airlines was the first airline in the world to use e-ticketing way back in 1994 (Air Treks, 2011). This initiative of Southwest Airlines has helped them a lot in saving costs related to paper. Also e ticketing has decreased the time required for passengers to board the plan and due to online ticketing checking time of passengers have decreased significantly. All these are the benefits of e ticketing.The company also encourages passengers to use e ticketing because of the advantages of this service. Customers are also charged a nominal fee for the service so this is a win win situation for everyone. Being the pioneer in e ticketing the company has also earned a reputation of serving its customers in a better way by using technology. The clerical work is also highly reduced by issuing tickets online. The system does all the work reducing the number of employees needed for the ticketing purpose. Paper tickets would take physical work as well so that is why it is not desirable. The cost effectiveness of Southwest Airlines is preserved in this way. Southwest Airlines flies domestically only so it is very important that it offers quick services to its customers. Mostly domestic flying passengers are in quite a hurry and that is why e ticketing compliments the clientele of Southwest Airlines. Passengers can book their flights before coming to the airport. By using e ticketing the company has increased efficiency of its operations. Between Flights Time Another operational method used by Southwest Airlines to increase its cost effectiveness is less time taken between flights. By decreasing time between flights Southwest Airlines fly more flights in a day. The time between flights is decreased by quick cleaning services and faster checking out of passengers. Southwest Airlines is famous for quick boarding and off boarding of passengers. Passengers are immediately off boarded as soon as the plan reaches the desired destination. This allows planes to fly more than other competitors in a day. Employees at different
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The paper tries to identify the performance of the company before and after the deregulation. It has been noted that the performance of the airline industry has been quite unstable because of deregulation. However, Southwest Airlines has been able to maintain its position because of its innovative strategy of low cost airlines and also due to its commendable service towards the passengers.
Possible strategies and their impacts for the organization (Grand Strategy Matrix) 5. Alternative Strategies (Corporate, Business, and Functional)-Bundles of Strategy Strategic Formulation: A Case Study of Southwest Airline 1. Introduction Few Airline industries have been as successfully strategic despite a number of organizational bottlenecks like Southwest Airline.
This organization provides car rental facilities to its customers and the company has made arrangements for booking the car online. The company also arranges hotel facilities to its customers according to their requirements. Different vocation packages and cruises are other attractive services offered by Southwest Airlines.
The company has a unique business model of careful financial planning, control, efficient costing and a quick decision making process. Such unique business models have been known to ensure continued success in business organisations (Schein, E. H. 1980).
In the rapidly transforming dynamics of the business environment,the effective change management becomes a critical factor.The various external and internal factors that significantly impact the performance outcome of the organizations need to anticipated to meet their challenges.Indeed,success of the firm is always the driving force behind the business strategies.
The discussion explains about the history of the company along with its organizational values in terms of its mission and vision. Moreover, a SWOT analysis of Southwest Airlines has been performed in the discussion to assess its competitive presence in the global market scenario.
The company wants to provide every people of the world the opportunity to fly. The company has the intention of providing the employees with a work environment that would be a stable one and there would be equal opportunity for all the employees in the organisation irrespective of any cast, creed, religion, gender or sexual orientation to grow in their career and nurture their talents.
Its corporate culture, famously non-traditional, increased employee loyalty and productivity. The influence of that culture on its business model and strategic implementation resulted in a highly successful business. The combination of a low-cost strategy and distinctive culture has allowed Southwest Airlines to position itself as an industry leader while remaining a very popular place to work.
Major airlines gave up competing with SWA’s low cost service for market share. SWA’s continued expansion has forced the other airlines to bring about a major change in their cost structures by developing new low-cost services in short-haul markets