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Strategic Market, The Southwest Airline Model

Strategic Market, The Southwest Airline Model - Research Paper Example

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Strategic Market, the Southwest Airline Model Name: Institution: Strategic Market, the Southwest Airline Model Introduction For a long time the Southwest Corporation has been a cutthroat leader in the airline business industries since its foundation. Since its inception the mission of the company has been a dedication to the highest quality services to customers, and this is being delivered with a sense of friendliness, warmth, individual pride, and company spirit (Gross & Schroder, 2007)…

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Strategic Market, The Southwest Airline Model

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Subject: Management
Type: Research Paper
Level: College
Pages: 8 (2000 words)
Downloads: 2
Author: wardtom

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The business model of the corporation is to eradicate the unnecessary frills provided by competitors; hence, reducing the cost to clients. The industry diminishes the cost by focusing at a lesser number of routes and only flying one type of plane; hence, it has created a niche market in the aviation industry. Therefore, by choosing only to employ one type of aircraft, it was a very strategic choice that could enable the company to sustain their business in the global competitive business world.

Target Market and the Southwest Business Model The Southwest airline industry has made significant efforts of employing effective strategic management policies and business models that can enable them to meet the demanding needs of customers in the targeted market. Michael Porter has attempted to reveal a unique and valuable strategic position of an industry based on a tailored set of activities that can enable the company to achieve a competitive advantage (Hill & Jones, 2009). Many industries have made considerable efforts of employing Porter’s five forces of the competitive advantage in order to sustain their business in the global competitive market.

The company manager of Southwest airline industry wanted to create a low cost aviation solution that can offer quality service to customers; hence enabling the company to sustain the competitive advantage. Therefore, the use of non-conventional models for a low-cost and controlled solid growth for the airline has been among the major aspects for achieving competitiveness in the airline industry (Gross & Schroder, 2007). The industry also segments the targeted market in varied ways including travelling short distances, frequent schedules, low cost fares as well as cost and value conscious customers.

The other one consists of value cost customers and best value for their dollars. The company created a business model to offer competitive pricing without cutting back the quality of the overall experience for both consumers and workforce. Although the price cutting policies were viewed as the major weaknesses of the airline industry, the aspiration of the company is reflected on the mission statement of the company. The company has remained

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