Business-Level and Corporate-Level Strategies



Business-Level and Corporate-Level Strategies

Introduction

After completing thirty years of service, Southwest Airlines has appeared as one of the world's leading Airline Company. The Southwest strategy towards business and the commerce at large have allowed the corporation to carry on growing at high earnings in phases of real financial recession. Currently, the marketplace for airlines is saturated and uneven to a great extent. Overfilling has directed the main United States airline companies to struggle with Southwest's low charge pricing approach. Nevertheless, because of the company's brand representation of well-organized and effectual low price service, company has been competent to defend against its rivals (e.g. Delta, United, and American Airlines) and retain its place of leading marketplace share in the United States. As the market turns out to be more and more commoditized and US demand decreasing, it is moment for Southwest to think about worldwide alternatives so that it makes sure its existence in the future, whereas retaining productivity. This paper will analyze Business-Level and Corporate-Level Strategies of Southwest Airlines along with the competitive setting to decide the company's most important rival.

Discussion

Analysis of Business Level Strategy

Business level approach of Southwest Airlines comprises of low- cost leadership and product delineation. The business adopts a low-cost approach, as they maintain operating expense and customer fares comparatively low. They direct in demarcation throughout segmenting marketplace, for example the stress on place-to-place journey and advertising to fare-cautious business passengers. They have typical capabilities in providing essential services devoid of including the price of extras. The company has overcome difficult challenges that no other company has so far attained; a record of constant productivity from the year 1973 and onwards. To decrease working expenses, the business functions a task force comprising completely of Boeing 737's, nothing abound with. The company has employed an "ironic" strategy to pull towards clientele by generating a pleasurable and pleasing environment both for its staff and clientele. Southwest's capabilities to manage overheads united with a strange and stirring advertising approach have aided to determine its outcome, productivity and reputation.

Many would think Southwest's expense cutting approach to be positioned mainly in its business functions and fare pricing, but the business has also taken remarkable steps in strengthening its database scheme, resultant in great effectiveness and competence for the business. The business functions around 400 venture that deal with business operations varying from aircraft repairs reservation schemes to reservations and ticket pricing. Southwest transferred all of its appliances that make the most of Oracle software to one adaptation for straightforwardness and effortlessness in relating scheme-wide information (Wiseth, 2004). This approach presents its capacity to recognize an option for costs reserves and great scheme dependability and take action on it to apprehend these gains. Southwest adopted a practical move to the consolidation attempt by engaging not just the technological professionals accountable for the substitution but also the shareholders employing the arrangement. The company's eagerness to enroll the proficiency of business professionals next to scheme users shows the company's capability to express an ...