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Essay / Research Paper Abstract
This 5 page paper assesses the strategy of Southwest as a low cost carrier strategy and looks at the way in which the firm operates using resources and developing culture to assess the degree of alignment between operating strategies and the way that the firm competes. The bibliography cites 3 sources.
Page Count:
5 pages (~225 words per page)
File: TS14_TESWstall.doc
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Unformatted sample text from the term paper:
able to remain profitable while many other airlines faced bankruptcy. The company competes using a low cost carrier strategy. The ability to deliver value to the passengers and create value
for the shareholders is supported by the underlying operating strategies, including the management of the positive employment relationship and efficient management of resources from employees to aircraft and office based
technology. Positive employment relationships create motivate staff who are more productive and helpful, and efficient management of resources, such as fast turnaround times on aircraft, helps to constrain costs. These
both add significantly to the low cost carrier strategy. 2. Introduction Southwest Airlines are well known in the airline industry as the developer of the low cost carrier model.
The model has been highly successful, despite many competitors emulating the strategy Southwest has been able to maintain a strong position which seen the firm sufficiently strong to acquire AirTran
in 2011 and to continue growth plans. The strength of the firm may be argued as not only the low cost carrier strategy, but the way in which this is
aligned with the mission, culture, resources and structure creating long term value and sustainability. 3. Southwest Airlines Analysis Southwest Airlines has been trading for more than 40 years,
with a business that has expanded to cover much of the US, flying domestic routes and keeping the price to the passengers with careful control of costs. The strategy has
involved the use of airports that are out of town, as well as eliminating "thrills" which increase costs, such as company to drink. Instead the company offered a no frills
service which helped to contain flight costs and create value for passengers. However, maintaining a low cost structure is not easy, it has to be supported by many business elements
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