Low-Cost Strategies And Swot Analysis - Cram.com

Furthermore, the seat space has also been narrowed down to put more seats in the plane cabin. c) Work Environment Love, Care and Fun: Southwest Airlines believe ... Home Flashcards CreateFlashcards Essays EssayTopics WritingTool Essays Essays FlashCards BrowseEssays Sign in FlashcardDashboard EssayDashboard EssaySettings SignOut HomePage Low-CostStrategiesAndSwotAnalysis:SWOTAnalysisOfPacificSouthwestAirlines Low-CostStrategiesAndSwotAnalysis:SWOTAnalysisOfPacificSouthwestAirlines 2958Words 12Pages OpenDocument EssaySampleCheckWritingQuality ShowMore Registertoreadtheintroduction… Theobjectiveofthiseliminationistoachievethe low-costandbetterturnaroundtime. b) Low-CostOperationsEconomyClass:Inordertomaintainthelow-coststrategy,SouthwestisfocusingontheEconomyClass passengerstogetmoretravelers.Furthermore,theseatspacehasalsobeennarroweddowntoput moreseatsintheplanecabin. c) WorkEnvironmentLove,CareandFun:SouthwestAirlinesbelieveinthefactthattheorganizationshouldhaveopen,enjoyable environment.Employeeproductivitydependsontheirpeaceofmindduringworkinghours. SouthwestAirlinesallowtheiremployeestohavefunandentertainmentduringworkinghours andtheemployeesarenotboundtoanyhardandfastrestrictedrules.Andthisresultsinagood productivity.Furthermore,topromotethiscorporatecultureoffunandlove,theSouthwestisalso listedontheNewYorkStockExchangeas“LUV”.Ablogtitled“TheNutsaboutSouthwest”is alsolaunchedtocreateapersonalloveandfunrelationshipbetweenthecompanybloggersand thereaders. …showmorecontent… Specially,inrecessionintheeconomy,Southwestproducedaprofitableyear.AsmentionedaboveintheIncomeStatement,Southwestkeepsongeneratingincomeforlastyears.Theirperformancehasbeenoutstandingintheairtravelindustry.ThecustomersofSouthwestarealmost100%satisfiedwiththeirproduct,qualityandservice.Theyhavebeentopratedinperformancerankingandtheyalsoachievedlowestratioofcustomer’scomplaints.TheenvironmentprovidedbytheSouthwestAirlinestotheirEmployeesisverylovingandenjoyable.Theiremployeesarehighlymotivatedandthelovetoservethecustomerswiththeirpersonalcare.Apartfromthesuccessfulstory,therearesomenegativeaspectsofSouthwestAirlineswhichaffecttheirbusiness.AveryimportantandmaybeharmfulforSouthwestisthedependabilityonsingleproduceroftheirBoeing737Aircraft.Thisboundsthemtostickwithonepieceofsourcetorunthebusiness.Furthermore,thelow-pricestrategysometimesbecomesdisadvantageforthemwhenitcomestobeselectedbythecustomerswhoarewillingtopayhighratesandbelievinglowqualityinlowrates.Similarly,theprocessingwithintheUnitedStatesalsoboundsthemtocapturethemarketexistsbeyondthenationalboundaries.Thereisagoodopportunitytoenterintoanewmarketwherethenumberofcustomerswillincreasedramatically.Despitethelowprices,Southwesthasbeenachievedconstantincomesbuttheyarealwaysthreatenedbyfuelpricesandothereconomicconditions.Inanutshell,Southwestisthechampofvariousfieldsintheindustrybutatthesametimetheyarelackingwithsomerequiredstrategicactionthatneedstobetakenassoonaspossiblesothattheycanmaintainthesameperformancelater RelatedDocuments SwotAnalysisOfAirasia Moreover,marketingisdefinedasdeliverthecoremessagesforthecustomer.AirAsiaisoneoftheairlinethatprovidenofrillsforthecustomer,thecompanywillmorefocusonthelowincomecustomer.Thecustomergetstotravelwiththecheapestprice.AirAsiagetagoodcomplimentandattractalotloyaltycustomer.(Azleen,2015).… ReadMore Words:1893-Pages:8 JetblueCase Thenoflightcancellationpolicygivescustomersaguaranteethattheywillreachtheirdestinationnomattertheissuesathand;thiscreatesagoodcustomerrelationshipandwillkeepcustomerscomingbackforflightsinthefuture.HedgingfuelpriceshelptolowercostsandsmoothoutthosecostsmakingJetBlue’sfinancialpositionlookmoreattractivetoinvestors.TheA320allowsforastandardizedtrainingprocessformechanics,pilots,andsupportstaffwhichallowsforlowerdirectlaborcostsalsoensuringabetterfinancialpositionfor… ReadMore Words:1777-Pages:7 SouthwestAirlinesPorter'sFiveForces Afteradropinfuelpricesin2009thecostoffuelhasdrasticallyincreased.Whilethereisnothingtheycandoaboutthecostoffuel,theycanlooktoexchangeolderplaneandplanesusedonlongerrouteswithnewmorefuelefficientplans.Anotherthingtheycandoistrytopicktheirroutesbasedonrevenueandfuelconsumption.Whilethisisnottheonlythingtheyneedtoworryaboutwhenpickingtheirroutes,itshoulddefinitelybeabigpartoftheirconsideration.PortersFiveForces Threatofnewentrants Thethreatofnewentrantsiscurrentlylow.… ReadMore Words:2600-Pages:11 AnalysisOfSouthwestAirlines LowCostCarriers Firstofall,LowCostCarriers(LCCs)isnowoneoftheimportantbusinessesintheairlineindustry.LCCs’moststrengthofserviceisthepriceoftickets.Theyofferlowerfareoperatingshort-haulandpoint-to-pointflights.Amongvariousairlines,SouthwestAirlinesisoneofthesuccessfulLCCs,andittakesuniqueapproachestosuccessfullydifferentiateitselffromthecompetitors.Itfocusesonpeople,theprocessandphysicalevidence.… ReadMore Words:1195-Pages:5 ValueChainAnalysisOfAirasa AirAsiahastwomaincustomerswhichistheyoung,fairconsciouscustomerandbusinesstravelerswhomarelookingforlowairfarestotraveltotheirdestination,safelyandcomfortably.AirAsiaadoptedlowcostleadershipstrategy,hence,allsourcessuchaslabour,fuelandaircraftsrelatedtocostreductionmustbeexploited.AirAsiamustreduceoperatingcostthroughoutitsinternalvaluechainactivities.Therefore,wehaveusedvaluechainanalysisasatooltoanalyzetheeffectivenessofAirAsia’slowcoststrategyinaddingvaluetotheircustomersandachievegreatercost-efficiency.AirAsia’sValueChainAnalysis InboundLogistic FuelManagement:AirAsiahasbeenworkinginpartnershipwithGE’sFlightEfficiencyServices(FES)… ReadMore Words:1137-Pages:5 StrategicObjectivesOfSouthwestAirlines Amidstthesetroubles,theairlinesucceededinattainingitsstrategicends.Conceptionofastrongcorporateculturewasanotherstrategicdecisionmadebytheairlines TacticalGoals.ThekeytacticalgoalbeforetheSouthwestmiddlelevelmanagerswastocutshortthecostsandtokeepthefareatlowchargeperunits.Forinstance,theorganizationcutcostsinitsmaintenanceplanbyperformingmoreworkonaplanewhenit’sinforacheckinsteadofgettingitinthreedifferent… ReadMore Words:2043-Pages:9 Summary:TheAirlineIndustry Generally,lostcostoperatorsaresmallerairlinesthatoffercheaperfaresbutreducedluxuries.Lowcostairlineshavealsobeenaffectingandrevolutionizingtheperformanceoftheairlineindustrywithlowfaresthatappealtoconsumers.Forexample,Southwestisarelativelynewairlinethatisgaininginpopularityamongstconsumers(Gowrisankaran,2002).Unlikemostairlines,Southwestisdifferentfromtheircompetitorsbecausetheydonotusea‘hubandspokesystem’(Gowrisankaran,2002).Thissystemrefersto,“asystemofairlineroutesthatallowsforefficientuseofairplanestocrossintootherairportstodistributepassengersalonginternationalflights”(TOH,1985).… ReadMore Words:916-Pages:4 PESTAnalysisOfAirAsia Threatofterrorism,peopleisafraidtoflyaftertheSeptember11terroristattacksincident.Economic Opportunities:Although,economicdownturns(e.g.globalfinancialcrisis)wouldresultinadownturnintheindustry,itcanprovetobeanopportunityforAirAsia.Forexample,asaresultoftheglobaleconomicdownturn(i.e.worldwidestockmarketplunge),aircraftleasingcostswerereducedbyabout40%;creatinganenvironmentwithlessercompetitionandenabledAirAsiatoleasetheiraircraftatacheaperrate(leadingtocheaperticketpricesforcustomers).… ReadMore Words:1987-Pages:8 Air27CaseStudy EVALUATIONOFALTERNATIVES Alternative#1:Air27shouldfollowthesametraditionalcheck-inprocedure.Air27shouldfollowthesametraditionalcheck-inproceduresbecausethecompanyisearningalotofprofits.Thecompanyshouldbecarefulthatthepassengersshouldnotbedisappointedtoo.However,hissolutionhasonlyoneadvantagebutseveraldisadvantages.TheadvantageforAir27isthatbecauseoftheirtraditionalwayofcheck-inthecompanyisabletokeepthefarelowforthepassengerstravellingbyAir27.… ReadMore Words:883-Pages:4 SouthwestAirlinesBusinessStrategy Itwasthenthattheynoticedtheymustinnovatetosurvive.Anemployeecameupwiththeideaofthe10-minuteturnaround.Theythoughtofthisideabecause“planesmakemoneyintheairnotontheground”andtheywouldrathercutbackontimetheyareonthegroundthancutonservice.Theyboardinadifferentway.Theideastartswithnoassignedseating,justaseatgroup,anditispossibleduetothegreatemployeesthatworktogether.… ReadMore Words:1481-Pages:6 RelatedTopics Management Strategicmanagement Marketing Balancesheet Organization Humanresourcemanagement ReadyToGetStarted? 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