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MGT599 - Strategic Management, Mod 4 Case Assignment - Essay Example

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MGT599 - Strategic Management, Mod 4 Case Assignment Executive Summary The Southwest Airline Company is a domestic carrier which provides quality services at quite low fares. The company commands great popularity among the segments where it operates. It is found to pursue the cost leadership strategy for building competitiveness as well as to improve the performance…
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Download file to see previous pages It should adopt such strategies which will help it in developing the business in accordance with the prevailing market conditions. The strategies will aid the company to retain more customers as well as provide improved quality services. Introduction Southwest Airlines is identified to be a carrier company in the United States of America which is known for its cheap fares. Headquarter of the airline company is learnt to be located in Dallas, Texas. It operates over 3,300 flights each day as well as engages over 37,000 employees in the company. It provides its services in almost 37 states. The company is famous for its cheap fares as well as quality services provided to the customers (Southwest Airlines, 2012). The company follows the strategy of offering efficient services to the customers at a cheap rate. It operates with a cost leadership strategy which enables the company to offer better services to its customers. Thesis Statement The purpose of this paper is to bring out the strategy adopted by the company for enhancing its profits as well as services. It will also help in comprehending the strategic choices that will further develop the performance of the company. Main Body The airline company practices the strategy of cost leadership which signifies that it provides quality carrier services at an economical rate. It aids the company in competing with its contenders in terms of low prices as well as the degree of quality of the provided services. The low or affordable fares facilitate the company to attain a competitive edge and maintain a dominant position in the industry in comparison to its competitors. This strategy also assists the company in earning more profits (BCIT School of Business faculty, n.d.). A SWOT analysis will be conducted to gain a comprehension regarding the effectiveness of cost leadership strategy with regard to the company. The SWOT analysis will aid in understanding the core competency of the strategy which has been primarily adopted for raising the degree of performance of the concerned company as well as for increasing its profits. Strengths: The airline company provides quality services at an affordable price which helps it to improve the performance as well as profits. This particular strategy makes it possible for the company to attain competitive advantage against its competitors. It is supposed to be quite a popular airline carrier in the relevant industry (Shahzad Trading & Consulting FZE, n.d.). Weaknesses: The company offers its services at reasonable prices which restrict it from developing innovative ideas with regard to improving its performance. In order to maintain low cost benefits, the company would require making investments on a continuous basis (Shahzad Trading & Consulting FZE, n.d.). Opportunities: Cost leadership acts as a vital opportunity for the company as it helps in earning increased profits and offer quality services. This strategy has aided the company in retaining increased customers as well as ensuring business growth (Shahzad Trading & Consulting FZE, n.d.). Threats: The cost leadership strategy adopted by the company may pose a threat by reducing the competitiveness of the company in comparison to the brand loyalty and recognition of its competitors. The company is also likely to face greater degree of threats from other airline companies which are also known ...Download file to see next pagesRead More
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