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Question

DocumentT-Werd Layout ReferencesMailings Ttle Subtiele ont Paragraph Styles I. Conduct am analysis of the US airlines industry using the appropriate model (name it), and comment on its profit potential. 2. Draw a Strategic Group Map of the airline industry. Clearly label the axes, and indicate the various strategic greups that exist within it. Which strategic type would yos identify with Southwest Airlines and why? The SGM should be attached. 3. Discuss Seuthwest Airline's business-level strategy and comment on the key success factors that drive it. 4. What can be concluded from Southwest's financial condition over the years covered in the case? Attach a spread sheet showing your work (these will sot be counted in the word limit) and comment on the treads in your marrative 5. Is Southwest Airline's competitive advantage sustaimable in the long rum? la view of the chasged conditions since the case was written, what recommendatios would you make for Southwest Airlines?

Explanation / Answer

3. To understand the business strategy of the Southwest Airlines, we need to investigate the culture and value system integrated in the company.

The vision statement of Southwest airlines is to become world’s most loved, most flown and most profitable airline.

The mission statement of Southwest Airlines is to deliver the highest quality of customer service indulged with a sense of warmth, individual pride, friendliness and company spirit.

The artifacts of Southwest Airlines’ culture are as follows:

The values embedded in Southwest Airlines’ culture are as follows:

There is a clear relationship between the vision statement and the organization culture of Southwest Airlines. . For sustenance of niche strategy and vision statement, it must be supported by the culture and value system of the organization. In case of Southwest airlines, the low-cost, no-frills niche strategy and the vision to become the most loved, most flown and most profitable airline is supported by the culture of putting employees first, which in turn prioritizes the needs of the consumers. The niche strategy has been woven in the purpose as well, that drives the organization i.e. to connect people with their loved ones through Friendly, low-cost, reliable air travel. Also, the Southwest Airlines has always been very flexible and adaptable. They mould their operations based on the market trends, keeping their vision and purpose in focus of all operations.

The business strategy of Southwest airlines is simple- keep the employees happy who in turn will make customers happy and satisfied. Their employee-first approach has actually fared well. This along with their other innovative strategies like seat allotment on FCFS Rule, quick response time have made them customers all time favorite. This is evident in their revenue as they have made profit continuously for 31 years. This employee first strategy has been adopted by various different organizations and thus having a positive influence on the knowledge economy. The innovation strategy of Southwest Airlines is proactive and has been a breakthrough in service industry.

5. A low price/no-frills business strategy can be detrimental to consumer’s satisfaction if the basic needs of travelling comfortably are not being met by the airlines. The basic needs can be:

For sustenance of niche strategy, it must be supported by the culture and value system of the organization. In case of southwest airlines, the low-cost, no-frills niche strategy is supported by the culture of putting employees first, which in turn prioritizes the needs of the consumers. The niche strategy has been woven in the purpose as well, that drives the organization i.e. to connect people with their loved ones through Friendly, low-cost, reliable air travel. Also, the Southwest Airlines has always been very flexible and adaptable. They mould their operations based on the market trends, keeping their vision and purpose in focus of all operations.

Other airlines have not been that successful with the niche strategy because their culture is not aligned with the business strategy. It is well said that a business strategy can be easily copied, but the culture of an organization can never be copied. A business strategy woven around the dimensions of organization culture is the most successful strategy. Southwest Airlines has imbibed this doctrine in their foundation and that’s the reason why they are so successful.

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