Strategic Market, The Southwest Airline Model - Research Paper Example

The employees at the company are trained to help customers and serve them genuinely with care in order to make customers happy; thus the company philosophy is translated into stockholder and customer happiness. The business model of the corporation is to eradicate the unnecessary frills provided by competitors; hence reducing the cost to clients. The industry reduces the cost by focusing on 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. The Southwest airline industry have made significant efforts of employing effective strategic management policies and business model that can enable them to meet the demanding needs of customers in the targeted market. Michael Porter has attempted to reveal unique and valuable strategic position of an industry based on a tailored set of activities that can enable the company to achieve competitive advantage (Hill and Jones, 2009).

Many industries have made considerable efforts of employing Porter’s five forces of 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 a competitive advantage. Therefore, the use of non-conventional models for low-cost and controlled solid growth for the airline has been among the major aspects for achieving competitiveness in the airline industry (Gross and Schroder, 2007).

The industry also segments targeted market in varied ways including travelling short distances, frequent schedules, low cost fares, as well as, cost and value conscious customers. The other consists of