Analysis
South west airlines has been in operation for quite a period to master most of the industry norms, operational pitfalls as well best ways to maximize revenues out the prevailing market conditions.
The following has been points of strength for the company
Cost consciousness:
It has been highlighted that one of the key operational ideals of South West Airlines is keeping costs as low as possible. The following has been the key areas of cost reduction.
Using internet ticket booking instead of the traditional agents located in the company’s operational strongholds (Alberth, 2010).
Internet ticketing has been touted as one of the cost drivers in most of the service industry. It is ineffective to use agencies in the current market trends due to various reasons, as highlighted in market dynamics .Below is a perfect explanation.
The involvement of agencies means that between South West Airlines and their clients there has been a third party. It will thus call for reduction of their profits in order to sustain the agents in the supply chain. It is thus advisable to deal directly with customers through internet ticket booking.This, however will commence with security concerns as cyber crime has been synonymous with all sorts of online transactions being initiated by people who need to hijack peoples business trails. But in the long term, this is the sustainable business model for South West Airlines (Alberth, 2010).
Comparison of the industry wages with those of South West Airlines should a big gap. This is has been as a result of the initiative to hire fewer workers in their teams.Consequently, South West Airlines has managed to offer competitive remuneration to employees, at the same time saving on the resulting efficiency.
The above policy has been highlighted by the company’s initiative to do away with some luxurious expenses that are actually adding no value to the company long term expansion goals. The decision to do away with facilities like provision of meals to the travelers has been the best in the business with regard to keeping costs low. In the policy direction, it has been highlighted that South West Airlines has been serving the short distance niche (Charles,2010).
Hence, provision of such expensive dishes to the travelers will amount to a luxury, adding unnecessary cost to the service provision, making the company eat in to the profits, at the same time transferring some portion of the meal’s value to passengers. The final results will be making travel tickets high forcing the passengers seek less expensive options. This is a symbol of prudence since flamboyancy has never been a competitive policy, but only serves to sink the business in the sea of unnecessary costs (Charles,2010).
Competitive niche.
South West Airlines has been having a rather funny mode of running business. This is because in the current trading environment, it is will be difficult for any airline business to compete with low cost options like road and railway is not easy. It remains a fact that the distinguishing and the only competitive advantage will the unparallel speed. It will be left at the mercy of travelers to determine whether they are in hurry to be left with the option of travelling by plane. Viewing it on another perspective, other traveling means like road transport will have lower expenses, hence offering competitive prices to the passengers. This will keep the management of South West Airlines at its toes but of importance will be scrambling with other airlines for the market niche being held by the other airlines at the same time trying its hand in gaining part of the low end transport modes (Charles, 2010).
Employee sustainability & long term sustainability
It is an impressing trend for South West Airline; it has been portrayed as a company that has simplified its task to the level of not considering experience and skills but rather the qualities and attitude of the people being hired. This has the implication that the human resource infrastructure has been well maintained that any employee will acquire the required skills within the minimum time after recruitment. This will cushion the company against any human resource crisis in case a many employees leave at one point (Mitchell, 2010).
Keeping tabs with the industry average in terms of remuneration o employees has been a two sided sword for South West Airlines; reducing costs resulting to consistent hiring during times of high employee turn out. At the same time, it will keep costs at check preventing unnecessary maintenance of unproductive employees to the organization (Mitchell, 2010).
Unique brand in the market
It will be fair to term South West as market leader in the services it provides to the market. This is because of its competitive reach with airlines and other transport means featuring regularly in its niche. Hence in this particular operation, South West Airlines has a competitive edge over its competitors in both sides. On another perspective, this will act as a cushion for the business during times of low businesses for the company has some bit of surety ingenerating sustainable revenues. Anomalous demands will be catered for smoothly for a business of this nature (Mitchell, 2010).
Enviable reputation
Over the company’s operation, it has cultivated enviable reputation by winning several service provision awards, making the brand be associated with positive values. This will forever remain an asset for the company as long as this is not damaged along succession lines (Alberth, 2010).
References
Michell, T (2010). Global trends in Airline industry, New York. John Wiley & Sons.
Charles F. & Meek, G (2010) .Globalization. Edition7. Publisher: Prentice Hall.
Albrecht, W.Stice, E &Sltice, J (2010).Principles of marketing Series. Cengage Learning.
Thomas R. &Paul M. (2004).Financial statement analysis: New York: McGraw Hill.
Leonard C. &Robin J. (2003). Flight management. New York: McGraw Hill.
Clayton,T (2011).The most efficient ways to fly.Kennet bros,New Zealand.
