Low Cost Airline Service: Quantity vs Quality

There was a downturn in passenger volume and revenues right after the attacks on 9/11/2001 suggesting that this business is susceptible if a lot more attacks occur

Southwest recently lost one of its most charismatic leaders, Mr. Kelleher. Kelleher played a major role in developing employee centered the company type that has produced Southwest successful.

Employees and investors are wary of Kelleher's replacement.

A strike among Southwest's unionized employees could ground the airline.

The concessions Southwest has created to union members could seriously reduce the company's profitability.

Certain United States airlines have established marketing or code-sharing alliances with every other. Southwest has opted not to join these alliances, and time will tell if this was the appropriate decision.

The Cultural Design creates these assumptions: Strategy formation is often a procedure of social interaction; beliefs are largely tacit and non-verbal; strategy reflects collective intentions; and culture does not encourage strategic change. All four of these statements could be applied with varying degrees of achievement on the strategic planning procedure at Southwest Airlines. For example, the statement that strategy formulation is often a technique of social interaction is really a issue few people would dispute. In most big corporations, the strategic direction the business takes as well as the strategic decisions the business creates are created following information gathering and through a consensus building process. For example, if Southwest decided it wanted to serve all fifty states instead of the modern day thirty states, 1 with the first things that would be done is that details would be gathered about what would be required, the timeline, the cost, the possibly return on investment, most likely responses from competitors as well as other key facts. Once this details was assembled, senior management at Southwest would meet to discuss and debate the proposal meaning that social interaction would be the driving force in formulating a strategy for expanding the geographic area served by Southwest Airlines. The hypothetical, but impractical, selection to strategy formation from the program of social interaction would involve someone taking on the responsibility of producing all the strategic decisions for the company. Even if only two folks are involved in strategy formation, the procedure is one that would be characterized as strategy formation through social interaction.

An article in Advertising and marketing (2004) suggests that there's most likely to become many U.S. carriers that go bankrupt in the next year, and that the key to survival for quite a few airlines will likely be to focus on losing as modest money as possible, rather than trying.

Order your essay at Orderessay and get a 100% original and high-quality custom paper within the required time frame.