Southwest Airlines Case Study Essay Sample
Millions of people fly everyday. Southwest air hoses provide low-fare travel among 58 metropoliss in the United States. Although the air hose industry suffered greatly in the wake of September 11. Southwest was able to go on to keep strong. Southwest air hose continues to keep steady gross revenues as much of the industry was affected by alterations in laws/regulations and competition come ining the market. In the undermentioned study there is a brief debut to Southwest Airlines and their scheme and so what. if anything. they need to make or non make to stay at the top and competitory in the air hose industry. The Problem
The major job of the company is whether they can go on turning and at the same clip maintain offering the same services to their clients. To go on turning. Southwest Airlines needs to analyse the external environment in order to guarantee their success. The Analysiss
Six elements of external environment
The solutions that will be presented for Southwest air hoses have to assail two chief issues: 1. How will they be able to maintain their “Southwest air hoses LUV” 2. How to maintain their enlargement and non impact the image of the air hose.
Southwest Airlines has a list of infinite options. many will impede their image from the interior out ( employees to costumiers ) while supplying a set of services that will maintain their clients happy for a piece. others will do the one time homelike air hose seem like a cold and large baron and doing their image of LUV to fall. so in order to avoid this and assist the company maintain both ends these are the solutions that will be presented for their quandary. 1. “Freemium” : What’s free: Web package and services. some content. Free to whom: users of the basic version. ” ( Chris Anderson. Why $ 0. 00 Is the Future of Business. 02. 25. 08 )
Finding things and thoughts that will hold no existent cost to the company for the service while being able to bear down an “extra” for the trade good of the clients will increase the net incomes of the company. 2. Cut costs: Disembark from the tarmac and allow the costumiers walk to the gateway. The company has to believe and be originative in the ways they can maintain a inexpensive rate for their flights while doing inventions to their planes. paying their employees and maintaining costumiers happy with their services. 3. Offset losingss with higher menus: Charge supernumerary for a extremely demanded twenty-four hours or for buying the ticket the same twenty-four hours. 4. In flight foreigners advertisement: Offer a infinite of advertisement inside of the aircraft to other companies. The Recommendations
After taking into consideration both the analysis and the options that were presented. it has been decided that the best way the company could take would be to unify both the first and 4th recommendations. The Freemium thought and Advertising inside of the aircraft are things that can be completed in small sum of clip and devising net income out of both things. This will guarantee that the LUV that Southwest Airlines shows towards their employees and clients keeps being the first precedence inside of the endeavor while non holding to compromise their growing by presenting new ways to do gross out of things that won’t do them put more money that they could stop fring. These two recommendations will be assailing and deciding the chief issues of the job: foremost a manner to maintain their “LUV” flowing and the 2nd one a manner to guarantee that the growing that has taken topographic point will non drop the company but alternatively assist them be bigger and better.
The recommendations were the 1s chosen because they are the 1s that have the less grade of failure. and if failure was to be met the impact in the company would be about or really near to nothing. Southwest is a great instance survey of how to acquire employee bargain in. to a growing developing concern. The key to the success of the southwest theoretical account has been plus use and low variable costs. married with strong company civilization to alining values. systems. constructions and scheme. By making this Southwest has been able to prolong competitory advantage by unleashing the potency in their work force.
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