Therefore, the company focuses on a relatively smaller market structure. This has been beneficial to the company since the operation cost reduces. However, there is a possibility that the increased competition from major airlines can be so intense in future so that the company might be forced to edge out of the marker. The company competes with the competitors for the areas they operate, and therefore southwest airline needs to decentralize its operation to other regions in the world so that it improves its market share. Furthermore, it is evident that in future, the competitors will emulate the low-cost strategies uses by Southwest Company to conduct their business.
Besides the competitors can decide to modify the strategies since the strategies are widely known. This can pose a significant risk for the company since the competitors will be able to offer the same lower prices than southwest airline while extending their operations in the same regions the company is servicing. This will be detrimental to the success of the business since the competitors have a better market presence. Therefore, the company is supposed to continually come up with new policies and move away from the strategies already known by the competitors.
It is evident that the company is making more profits and operational revenues. Besides, Southwest airlines have a huge financial stability which they can use to expand its extend its operations worldwide through entering into new markets and purchasing new aircraft and maintaining and upgrading the facilities to cater for the expansion.
Proper maintenance of the premises makes them more appealing to the clients thereby boosting the competitive advantage. Even though the endeavor is costly, there is a high probability that the company will expand its market share while at the same time maintaining the already existing market. Moreover, the southwest airline is regarded as the best company in customer service. This helps it gain a competitive advantage over it competitors and thereby have a bigger share in the prevailing market.
Best customer service starts with empowering employees. Therefore, the company has done more to motivate staff who are also a major source of competition. Therefore, it is recommended that the company focuses much on motivating the employees so that they develop new strategies for customer relation. Besides, the employees should be conversant with the use of information technology equipment such as computers to boost customer service and marketing. For instance, with the ever-increasing role of social media in the advent of marketing and customer relation, the company can tap into this resource to facilitate more interface between the company and the consumers.
Through social media, the company can get instant feedback and reviews on their service delivery and therefore can get new strategies. Finally, the company mainly depends on Boeing as the sole supplier for aircraft and supply of spare parts. Case 20 - Southwest Airlines Strategic Management.
Southwest Airlines Prices Analysis
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Southwest Airlines SWOT Analysis & Recommendations
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BSH Admin. Jan Roald Buemia Triumfante. Where testing a temperature sensor on a plane once required wrapping every duct in tape, firing up the engines, and checking each duct for melted tape, technicians can now spot bad seals simply by looking at heat signatures as they walk around a plane. John Seely Brown is independent co-chairman for the Center for the Edge and is a visiting scholar and adviser to the provost at the University of Southern California. Cover image by: Molly Woodworth. Per company-provided information. This case is based on a series of interviews, conducted on-site at Dallas-Love Field as well as via telephone with leadership and members of the Field Tech group, between April and November View in article.
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Social login not available on Microsoft Edge browser at this time. Welcome back. Still not a member? Join My Deloitte. Article 07 March John Hagel. John Seely Brown. Maggie Wooll. Andrew de Maar. The workgroup: Field Techs The workgroup is tasked with identifying and resolving mechanical, electrical, and other issues that no other maintenance unit can fix, including problems no one can recall seeing before. Sustained involvement: Field Techs are assigned to the workgroup full time. They spend their days fixing issues on aircraft and leveraging the resources of local maintenance crews, as well as working with other Field Techs to help troubleshoot and resolve issues on planes at other sites.
Integrated effort: Although its members are geographically distributed and there may be only one Field Tech physically with any given plane, they are often in contact with each other throughout the day. Around 25 percent of the aircraft the workgroup touches each day require the Field Techs to work collaboratively, and often interdependently, to develop solutions to new and challenging problems. Frame a powerful question In the quest to be better than the day before, the Field Tech workgroup tends to ask questions in search of answers that might give members an edge in keeping more planes operational.
Eliminate unproductive friction Not only is each technician unique, so is each node; the workplace culture at each reflects the culture of its region. Seek new contexts To help them be more effective, Field Techs are encouraged to go out and learn from experts across the field of avionics—and beyond. Acknowledgements Cover image by: Molly Woodworth. Endnotes Per company-provided information. View in article Show more Show less. Learn more about the Deloitte Center for the Edge View.
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