Summarization Southwest airlines is an exemplary destination for both scholars and practitioners when strategy and innovation are talked about. It amalgamated the concepts of cost leadership and differentiation to place its similar products in the extensive competitive market…
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The employees are not binded by formalities and teams are cross-functional. Secondly, Southwest does not provide too much personalization in its services which keeps its cost low and also provides for standardization in services. Although high end facilities are not made available to the employees, but standard services and low cost is what makes Southwest an exceptional case amongst the airline competitors. Weaknesses Southwest suffers from certain internal management limitations which arise from leadership incompetency. Lately the organization had suffered dramatic shift in the way culture was managed by its leaders- from Herb Kelleher to Gary Kelly. Loss of relationships, affection and cultural match took place which was worsened by the externalities of increased safety demands, fuel prices and customer complaints. Recommendation Southwest has always thrived on the motto of providing services to the customers at rock bottom prices which its rivals could not. To sustain this feat, it is recommended that southwest should concentrate on its human resource development. Till date, its workforce strategies and strengthened human capital had garnered it the much needed reputation and profitability. In the future also, it needs to develop its employees by means of cross-departmental training and encouraging them to come up with greater innovation.
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(Business Policy and Strategic Management Assignment)
“Business Policy and Strategic Management Assignment”, n.d. https://studentshare.org/other/1415706-business-policy-and-strategic-management.
Internal analysis of Southwest Airlines Southwest airlines have always resorted to integrated and comprehensive internal practices which have streamlined its value chain along with the provision of a unique strategic positioning to the airlines. Its tangible resources comprise of automated systems, short-haul point-to-point routes, standardized fleet of aircrafts and a knowledgeable and skilled human capital which is equipped of the latest technical and service know-how (OUP n.d).
However, in the case of Sony we will tend to look at success based on R&D which largely determines innovativeness, financial soundness and strategic alliances. Sony Corporation Sony Corporation was started in May 1946 that is shortly after the WWII by Akio Morita and Masura Ikuba.
The staff in any operation forms a vital resource that can be harnessed, through strategic management, for realization of goals. In operations, human resources are considered unique and important because rival organizations cannot replicate them. Other resources in operations can easily get replicated thereby reducing the competitive edge of an organization.
Responding to external pressure has caused Tesco to be innovative, diversity production and to offer competitive prices amid stiff competition. The retailer has invested in internal competencies like motivated employees and strategic management. The company is faced with challenges like overreliance on domestic market, ineffective international market strategy and changing consumer demands.
This gives Tesco the ability to diversify the risk arising from one market to be spread across 14 different markets. Tesco’s diversified portfolio enables it to outsource both raw material as well as distribution of the final products effectively. Tesco’s move to diversify into 14 international markets happened long before other retail giants could have realized its real potential (Burton, 1995).
As proposed by Kim and Mauborgne, the Blue Ocean Strategy fundamentally suggests that companies should attempt to create new demand across various uncontested market spaces with the sole objective of attempting to avoid competition.
Strategic management means formulation and implementation of plans and initiative taken by the company for achieving its major goals. This is done on the behalf of the proprietor after considering the resource of the company. For
As a result, we set a higher price for the product in order to capture a larger market share and to earn more profit. However, the products of other companies also offer the same feature as ours and they kept the same price or increased it a bit. So, setting of a higher