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The importance of strategic choices should not be underestimated. Within a company, they define everything from the general developmental direction to the gist of work of an ordinary employee. Thus, it is critical to make informed strategic choices. This paper contains a summary of strategic options to improve competitiveness of Southwest Airlines and their impact on the company. Evaluation of Strategic Options of Southwest Airlines Table 1 represents a summary of various tactics available to Southwest Airlines within the SWOT matrix and a variety of competitive strategies. It highlights the multidimensional nature of solutions in the context of competitive strategies, as the current strategy to keep things simple and consistent strips the company of many opportunities (Brancatelli, 2008). Regardless of the current state of the companys internal and/or external environments, there are always various options available in terms of which strategy to adopt. Moreover, these options are based on using the companys strengths and opportunities to mitigate weaknesses and minimize the impact of threats with the focus maintained on remaining a competitive business. Importantly, the low cost, differentiation, focus, and preemptive strategies are industry-independent (Porters generic strategies, n.d.). For instance, if Southwest Airlines were to choose a focus strategy for future development, it could choose any of the positioning advantages to enhance its competitiveness (Competitive advantage, n.d.). Consequently, the entity could respond to the bargaining power of customers, as a factor of Porters Five Forces analysis, with commitment of all resources (strengths) to a narrow market segment, which would result in outstanding service and enhanced value proposition. In fact, Thompson and Martin (2005) point out that the concept of adding value is an essential part of the Porters model. Customers within this particular
Pre-emptive Realizing thorough marketing research to determine future customer needs and expectations trends accurately and altering the companys proposition accordingly Monitoring competition closely and counteracting to their activities prior to their realization (if possible) and/or creating unfavorable conditions for rivals to operate in Creating or strengthening favorable trends in the sociocultural milieu
Keeping operational costs at the minimal level enhances business stamina, which also allows to continue operations through difficult times
Customer loyalty based on unique value proposition and effective branding reduce negative impacts of the economic environment
Enhanced execution of the planning function and evaluation of the various scenarios and proactive marketing to beat competition even during the hard times
STRATEGIC CHOICES
market segment would undoubtedly be satisfied. This strategy would allow counteracting to the companys weaknesses as well. For instance, knowing the specifics of the aforementioned market segment would give Southwest Airlines a clear and substantial advantage over its rivals, as well enabling it to react to any move from the competition. After all, the focus approach allows a company to adjust its strategy so that it would lead to the exclusion of others (Porters generic competitive strategies, n.d.). The focus strategy would also require the carrier to concentrate on certain opportunities in its external environment rather than be torn apart among them. On the one hand, this would imply effective use of resources and greater return; on the other hand, it would provide a source of quality information about the socio-cultural trends that the competitors would not be able to gather in a timely manner. The focus strategy would also help mitigate the effect of such a factor as economic instability, which is always a threat to a business. Knowing a narrow market through and through makes a company less dependent on the external factors altogether. Moreover, brand loyalty is one of the most important factors when customers are forced by the economic situation to cut down on their expenses. Conclusion Strategy is the key to success of a business. Regardless of the conditions of internal and external environments of an organization, there is always an abundance of strategic choices to make. Evaluation of competition and the way the company reacts to it gain critical importance in this context. Southwest Airlines operates in a highly competitive industry and choosing the right strategy to fight competition is imperative. Whatever the choice is made, the companys strengths and effective seizing of the existing opportunities together with taking into consideration the impact of the current weaknesses and threats comprise a solid platform for it.
STRATEGIC CHOICES References Brancatelli, J. (2008). Southwest Airlines seven secrets for success. Retrieved from http://www.wired.com/cars/futuretransport/news/2008/07/portfolio_0708 Competitive advantage (n.d.). Retrieved from: http://www.quickmba.com/strategy/ competitive-advantage/ Porters generic competitive strategies (ways of competing). (n.d.). Retrieved from http://vectorstudy.com/management_theories/porters_competitive_strategies.htm Porters generic strategies. (n.d.). Retrieved from: http://www.quickmba.com/strategy/ generic.shtml
Thompson, J., & Martin. F. (2005). Strategic management: Awareness and change (5th ed.). London, England: Cengage Learning.