Southwest Airlines strategies
Southwest Airlines strategic planning is an ongoing process and struggling to meet the challenges and gain a competitive advantage in the market. During the last week, I have identified the strategy of the company through Space Matrix analysis and found that the company had focused the service development. It has designed low-cost carrier strategy to maintain the competitive advantage in the U.S market. The current strategy of Southwest Airlines has maintained its position in the market and attracted more customers (Southwest Airlines, 2015).
Southwest Airlines can choose some other strategic alternative such as improve its sustainability through providing better sales services, merger, and acquisition with other leading airline company for international expansion, concentrate on diversification and integration and cost reduction. It is noticed that the technological development and service innovation in an effective way to penetrate in the new international market. There are some other alternatives that organization should pursue and improve its performance globally. The company can expand its operations through merger and acquisition with other airline company. The combination of aircraft, employees, service, marketing approaches, and other elements would take the Southwest Airlines to new heights. It would manage the operations complexity, reduce the company cost, and enhance its revenues.
The chances of success would increase through combining the resources, providing innovative services, and increasing the customers base (Deloitte, 2016). The company should focus on the service improvement, cost reduction, and increase diversification. The improved services will attract more customers and improve their satisfaction and loyalty that will improve company reputation in and increase its sales the market. The diversification strategy plays an important role in expanding the company operations through adding new marketing approaches and services.
References
Deloitte. (2016). Insights. Retrieved from http://www2.deloitte.com/be/en/pages/mergers-and-acquisitions/articles/growth-through-merger-and-acquisitions.html
Southwest Airlines 2015South west Airline Co.. 2015 Annual report to shareholders U.SSouthwest Airlines
LA2
Quantitative strategic planning matrix (QSPM) is effective tool for identifying and evaluating the possible strategies and comparing feasible alternative procedures.
QSPM tool for merger and acquisition strategy
After using QSPM tool the sum of total Attractiveness score is 3.34 that show that the strategy would be probably acceptable . The score show that the merger and acquisition strategy is an attractive strategy that plays an important role development and growth of Southwest Airlines. The decision of acquiring the other leading airline company would be an effective decision that improves the operational performance. It helps the company to combine the resources with other competitor company and increase its sales and revenues. It is an optional strategy for an organization . However, Southwest Airlines’s current strategy is also an efficient strategy. It needs to focus the optional strategy and focus on current strategy.
References
Bhandari, A. (2013). Strategic management: A Conceptual Framework. India: MC Graw Hill Education.
