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Empowerment Case Solution
Posted by Adam Hudson on Dec-20-2017
The Harvard business review has published the Southwest Airlines Nonstop Culture
Flying High with Transparency and Empowerment Case Study. Like all HBR case
studies, the Southwest Airlines Nonstop Culture Flying High with Transparency and
Empowerment Case is designed and drafted in a manner to allow the reader to
experience a real-world problem and solve it accordingly. The case study, like other
HBR case studies, will help the reader and students develop a broader, and a clearer
understanding of the business world and dynamics.
The Southwest Airlines Nonstop Culture Flying High with Transparency and
Empowerment Case is based on a current managerial and strategic problem being
faced by the organization, which must be solved tactfully to allow progression, as
well as maintain a competitive position. This paper is written to facilitate the case
solution for the Southwest Airlines Nonstop Culture Flying High with Transparency
and Empowerment Case Study.
The case solution for the Southwest Airlines Nonstop Culture Flying High with
Transparency and Empowerment Case Study first identifies the central issue that is
elaborated on throughout the case. The case solution then analyses the case through
relevant strategic models and tools including the SWOT Analysis, Porter Five Forces
Analysis, PESTEL Analysis, VRIO analysis, Value Chain Analysis, BCG Matrix analysis,
Ansoff Matrix analysis, and the Marketing Mix analysis. This analysis is to help in the
identification of a feasible strategy and solution for the Southwest Airlines Nonstop
Culture Flying High with Transparency and Empowerment Case Study. Alternative
solutions are also proposed in the case solution, primarily because alternative
solutions often act as contingency plans.
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2.2. Solving HBS case studies
As a result, for solving the Southwest Airlines Nonstop Culture Flying High with
Transparency and Empowerment case, it is essential to read the case study
thoroughly. The identification of the problem correctly is vital for undergoing the
analysis rightly, and for developing relevant solutions for the Southwest Airlines
Nonstop Culture Flying High with Transparency and Empowerment Case Study. It is
also essential to identify all the appropriate parties that are being impacted by the
problem as well as the decision. The correct problem identification will ensure that
all the solutions developed during the case analysis of the Southwest Airlines
Nonstop Culture Flying High with Transparency and Empowerment Case Study are
applicable and pragmatic.
The external environment analysis is needed for the Southwest Airlines Nonstop
Culture Flying High with Transparency and Empowerment Case Study to make sure
that it actively, and proactively responds to the macro-environment. The macro
environment or the external environment for the Southwest Airlines Nonstop
Culture Flying High with Transparency and Empowerment Case includes those
factors which are not in control of the business or the company directly. As a result:
The Southwest Airlines Nonstop Culture Flying High with Transparency and
Empowerment cannot influence these factors in its favour, and in contrast,
these factors directly affect the operations and workings of the company.
As a result, Southwest Airlines Nonstop Culture Flying High with Transparency
and Empowerment must make sure to continually assess and review the
external environment to make sure that it responds to external factors, and
take them into account, during strategic decisions, and strategy devising.
Businesses like Southwest Airlines Nonstop Culture Flying High with
Transparency and Empowerment make use of strategic model tools continually
to make sure that they are aware of the external environment.
These include tools like the pestle analysis and Porter’s five force model, as
well as strategic group analysis and pentagonal analysis, to name a few.
The external analysis for the Southwest Airlines Nonstop Culture Flying High
with Transparency and Empowerment Case Study will assess and will apply the
strategic models and tools to review the business environment for the
company.PESTEL Analysis
3.1.1. Political
Political factors and elements can have a direct and indirect impact on the business.
This is seen through the Southwest Airlines Nonstop Culture Flying High with
Transparency and Empowerment Case Study.
Policymakers for the Southwest Airlines Nonstop Culture Flying High with
Transparency and Empowerment Case are in all likelihood to intervene in the
business surroundings.
Commercial restrictions and political stability are additionally integral factors
that will determine the success or failure of Southwest Airlines Nonstop Culture
Flying High with Transparency and Empowerment.
3.1.1.2. Taxation
Tax policy will influence the cost of doing business for Southwest Airlines
Nonstop Culture Flying High with Transparency and Empowerment.
An increase in organization taxation (on business profits) has a similar impact
as an expansion in expenses.
Organizations can pass a portion of this increase on to shoppers in more
expensive rates, yet it will likewise influence the bottom line of the business.
The government helps organizations in two primary ways: monetary help and
regulatory.
Southwest Airlines Nonstop Culture Flying High with Transparency and
Empowerment can use government assistance and grants for purposes of
growing the business, advancement, exporting, and innovative work.
Southwest Airlines Nonstop Culture Flying High with Transparency and
Empowerment can also be impacted by when Governments modify regulations
and laws.
The economic factors are one of the most important of PESTEL factors and can
influence Southwest Airlines Nonstop Culture Flying High with Transparency and
Empowerment in several ways.
3.1.2.1. GDP
Economic components have the most evident effect on the profitability and
overall appeal of Southwest Airlines Nonstop Culture Flying High with
Transparency and Empowerment.
Even though GDP per capita is a useful economic factor, GDP per capita gives
just a fractional perspective on the economic factors that may influence
Southwest Airlines Nonstop Culture Flying High with Transparency and
Empowerment.
Higher GDP leads to higher disposable income and hence higher sales for
Southwest Airlines Nonstop Culture Flying High with Transparency and
Empowerment.
3.1.2.2. Inflation
Higher inflation will disintegrate the purchasing power of the consumer and
the shopper
Higher inflation will also harm the costs of raw materials and other inputs
that are utilised by Southwest Airlines Nonstop Culture Flying High with
Transparency and Empowerment.
Fluctuations in interest rates may translate into higher or lower costs for the
purchase or sale of items and administrations provided by Southwest Airlines
Nonstop Culture Flying High with Transparency and Empowerment.
Higher interest rates hurt the disposable cash of consumers.
3.1.2.5. How can the Southwest Airlines Nonstop Culture Flying High with
Transparency and Empowerment decrease the risk of economic instability?
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3.1.3. Social
Social influences will stem from social components of the macro environment. Under
the PESTEL Analysis, they can influence Southwest Airlines Nonstop Culture Flying
High with Transparency and Empowerment in several ways:
Social patterns affect work trends and patterns and are directly related to the
behaviours of consumers.
Social patterns also have a direct influence on buyer tastes and inclinations,
and the specific kind, structure, and volume of interest for an item or service.
Social trends of higher education have allowed firms like Southwest Airlines
Nonstop Culture Flying High with Transparency and Empowerment to have
access to a pool of higher skilled talent – but at the same time, also face a more
criticising consumer base.
Higher education has also made consumers more aware of different product
offerings by companies like Southwest Airlines Nonstop Culture Flying High with
Transparency and Empowerment.
consumers are also more educated and knowledgeable of different
substitutes of a product, as well as become more readily available at different
touchpoints.
3.1.3.5. How can Southwest Airlines Nonstop Culture Flying High with Transparency
and Empowerment use social aspects for growth?
3.1.4. Technological
The technological factors can influence Southwest Airlines Nonstop Culture Flying
High with Transparency and Empowerment in several ways:
3.1.4.1. Innovation
The expansion of the Internet and online business has discarded many
intermediaries. Southwest Airlines Nonstop Culture Flying High with
Transparency and Empowerment can communicate and retail directly to the
consumers now, or through modern intermediaries such as eBay as well, for
example.
Southwest Airlines Nonstop Culture Flying High with Transparency and
Empowerment may also use current social networks to retail and use e-
commerce to boost sales.
For Southwest Airlines Nonstop Culture Flying High with Transparency and
Empowerment, technological innovation can be utilised to build on competitive
advantage through several different ways.
Southwest Airlines Nonstop Culture Flying High with Transparency and
Empowerment can incorporate less expensive production, improved access to
clients, improved marketing, improvement in product quality, and increased
levels of business intelligence than the competition.
3.1.4.5. Managing technology and the future for Southwest Airlines Nonstop Culture
Flying High with Transparency and Empowerment
3.1.5. Environmental
For Southwest Airlines Nonstop Culture Flying High with Transparency and
Empowerment, the environmental aspects of the PESTEL analysis may include:
Legal components can influence Southwest Airlines Nonstop Culture Flying High with
Transparency and Empowerment directly, and can likewise influence the
instruments through which an organization buys its stock or connects with the client.
The Southwest Airlines Nonstop Culture Flying High with Transparency and
Empowerment should be mindful, for example, of the following legal aspects:
Labour law refers to the guidelines in regulations that set up minimum and
benchmark conditions.
These include identifying with the work of people.
Labour laws include aspects of minimum working age, least time-based
compensation, etc.
Southwest Airlines Nonstop Culture Flying High with Transparency and
Empowerment must be mindful of these laws in routine business tasks such as
hiring, for example.
Under the discrimination law, Southwest Airlines Nonstop Culture Flying High
with Transparency and Empowerment must ensure to avoid episodes of
unequal or uncalled for treatment based on an individual's age, inability, sex,
national source, race, religion, and sexual orientation.
Southwest Airlines Nonstop Culture Flying High with Transparency and
Empowerment should train its human resource management team in ensuring
that there is no:
o Unequal hiring
o Discrimination in recruitment
o Internal discrimination in talent management
o Bias in training opportunities
o Unfair compensation systems
o Prejudiced promotions and succession management
The five forces identified in Porter's model can effect Southwest Airlines
Nonstop Culture Flying High with Transparency and Empowerment ’s ability to
serve its clients and make a profit.
A change in any of the five forces may regularly require a business unit from
Southwest Airlines Nonstop Culture Flying High with Transparency and
Empowerment to reassess the market place given the general change in
industry data and dynamics. The general industry appeal and attractiveness.
Southwest Airlines Nonstop Culture Flying High with Transparency and
Empowerment should apply and centre their skills, plan of action or business
models to accomplish profits above the business average. This may be done in
multiple ways, each distinguished in their application to the forces individually
as is elaborated below:
New entrants to an industry bring new potential and a choice to increase the
market share and overall share of the pie that puts pressure on price, costs, and
the investment price essential to compete.
For Southwest Airlines Nonstop Culture Flying High with Transparency and
Empowerment, particularly while new entrants are diversifying from different
markets into the chief industry, they will be able to leverage existing talents and
cash flows to shake up the opposition.
The threat of entry in the industry, consequently, puts a cap at the earning
capacity and profit capability for Southwest Airlines Nonstop Culture Flying High
with Transparency and Empowerment.
While the threat of new entreaty is high, Southwest Airlines Nonstop Culture
Flying High with Transparency and Empowerment should maintain their prices
or increase funding and investment to discourage new competition.
The risk of entry in an industry depends upon on the peak of entry barriers
and limitations that are a blessing for players such as Southwest Airlines
Nonstop Culture Flying High with Transparency and Empowerment and on the
response that new entrants can count on from existing players.
If entry barriers are low and novices count on little retaliation from the
entrenched competition, the chance of entry is high, and profitability for
Southwest Airlines Nonstop Culture Flying High with Transparency and
Empowerment will be moderated.
It is the danger of entry, not whether the entry of new players takes place
that holds down profitability.
3.2.1.4. Some barriers to entry for new entrants in favour of Southwest Airlines
Nonstop Culture Flying High with Transparency and Empowerment :
3.2.1.5. What can Southwest Airlines Nonstop Culture Flying High with Transparency
and Empowerment do to face this challenge?
Switching costs for direct substitutes is not very high for consumers.
The per-unit-volume prices may be higher or lower.
This makes the threat of substitute high.
From the point of view of the consumer, there are some differences between
the ways different products of the same or similar category are used, but many
consumption decisions are a matter of personal taste - this makes products
vulnerable to the threat of other substitutes.
Overall, the threat of substitutes is assessed to be moderately high.
3.2.2.5. How can Southwest Airlines Nonstop Culture Flying High with Transparency
and Empowerment combat the threat from substitute products?
The buyer for Southwest Airlines Nonstop Culture Flying High with
Transparency and Empowerment is not necessarily the group that consumes
the product – but rather refers to the group of customers that purchases the
product from Southwest Airlines Nonstop Culture Flying High with Transparency
and Empowerment to either distribute further, retail it, or even consume it.
Hypermarkets and supermarkets, as well as independent retailers and
distribution agents to end consumers, are the core buyers for Southwest
Airlines Nonstop Culture Flying High with Transparency and Empowerment that
make up the market’s volume.
Supermarkets and hypermarkets, along with many food chains that are
concentrated, which increases the buyer power.
Products are stocked with buyers and retailers by Southwest Airlines Nonstop
Culture Flying High with Transparency and Empowerment based on consumer
demand.
3.2.3.4. What can Southwest Airlines Nonstop Culture Flying High with Transparency
and Empowerment do to ensure risks against high buyer power?
Supplier power refers to the power that is held by the suppliers in terms of
pricing of the raw materials and inputs used for the business.
3.2.4.2. Sources of production for Southwest Airlines Nonstop Culture Flying High
with Transparency and Empowerment
For Southwest Airlines Nonstop Culture Flying High with Transparency and
Empowerment, there are numerous independent suppliers within the industry,
and all comprise of a few pretty small operations that lead to weakened overall
supplier power.
Independent sellers and suppliers, however, can locate different
opportunities and invest in alternative markets – which can be a challenge for
Southwest Airlines Nonstop Culture Flying High with Transparency and
Empowerment.
Suppliers can integrate forward into the decision making and business
dynamics themselves as well.
Also, to the buyers, the quality of the supplies and the raw materials is of
utmost importance.
However, in an industry with a high number of suppliers, Southwest Airlines
Nonstop Culture Flying High with Transparency and Empowerment can switch
to different suppliers at any time without experiencing any costs of the
business.
Overall bargaining power of suppliers is assessed to be moderate.
3.2.4.5. How can Southwest Airlines Nonstop Culture Flying High with Transparency
and Empowerment deal with the challenge?
Get contracts with multiple suppliers and get resources and raw materials
from them accordingly.
Invest in manufacturer controlled production facility to maintain consistency
in quality.
3.2.5.3. Diversification
Purchasers and buyers have a wide range of products to choose from, with
relatively low switching costs. These factors tend to intensify rivalry.
Though players in the industry may off niche or premium products, they also
continue to operate in the mass markets at large, which again leads to high
competition.
The high fixed cost and the high bargaining power of the buyers, which can
lead to the lowering of the prices from manufacturers add to the highly
competitive nature of the industry.
The overall rivalry is assessed to be high.
3.2.5.5. How can Southwest Airlines Nonstop Culture Flying High with Transparency
and Empowerment combat rivalry and competitive forces of the industry?
The high number of direct and indirect alternatives available also make
Southwest Airlines Nonstop Culture Flying High with Transparency and
Empowerment vulnerable to the high threat of substitutes.
Low to negligible switching costs experienced on the part of the consumers
and buyers.
3.3.1.3. Profitability
The industry in which Southwest Airlines Nonstop Culture Flying High with
Transparency and Empowerment operates is highly fragmented.
It has numerous local and international players.
It is not very likely for players in the industry to integrate forward into on-
trade or retail businesses.
This results in the players experiencing high bargaining power of the buyers
from the market.
3.3.5.2. Differentiation
Figure 1 Pentagonal analysis for Southwest Airlines Nonstop Culture Flying High with
Transparency and Empowerment
3.4.1. Identifying where Southwest Airlines Nonstop Culture Flying High with
Transparency and Empowerment is on the Industry Life Cycle Curve
Products offered during this stage re doubtful as success and life of the
product is unproven and not known.
Southwest Airlines Nonstop Culture Flying High with Transparency and
Empowerment will use a focused strategy during this phase to emphasise the
uniqueness of the product.
The product or the brand will have a small market of consumers – known
largely as early adopters
Marketing strategies adopted by the company will focus on generating
awareness of the product and therefore, will largely use a functional appeal.
Products in this stage have high growth and high market share.
There is also increasing competition and rivalry in the market – new entrants
will enter and compete looking at the success of products during this stage.
Firm size is generally larger and is more dominant over players if successful-
compared to growth stage.
Innovations continue but are stable and not radical.
3.5.1. Southwest Airlines Nonstop Culture Flying High with Transparency and
Empowerment and strategic group formation
Specialization
Brand identification
Push versus pull strategies
Channel determination
Product quality
Technological position
Vertical joining
cost position
Service
Price strategy
Financial or working influence
Parent organization relationship
Government relationship
Despite the various aspects available for comparison of competing players, it is often
important to differentiate strategic groupings of players of aspects of how they
compete with each other, and on aspects of where they compete as well
3.5.3. Procedure for strategic group analysis for Southwest Airlines Nonstop Culture
Flying High with Transparency and Empowerment
3.5.4. How will strategic group planning help Southwest Airlines Nonstop Culture
Flying High with Transparency and Empowerment
For Southwest Airlines Nonstop Culture Flying High with Transparency and
Empowerment, strategic group analysis is important because it will:
The strategic group analysis is also important for Southwest Airlines Nonstop
Culture Flying High with Transparency and Empowerment because it will assist
in analysing the current market position of players, as well as help in assessing
future strategic moves and directions of the competition in the market.
Assists in evaluating and identifying different underlying factors that will
influence the company’s profitability.
Makes use of standard comparison aspects between different players in an
industry to group them as per strategic directions as well as strategic
dimensions.
Scenario planning for Southwest Airlines Nonstop Culture Flying High with
Transparency and Empowerment ’s strategic direction will take form through
speculation and contingency form – methods used by the military for strategic
planning and direction.
3.6.1. Southwest Airlines Nonstop Culture Flying High with Transparency and
Empowerment ’s Utilization of Scenario planning
For Southwest Airlines Nonstop Culture Flying High with Transparency and
Empowerment, scenario planning comprises of making suppositions of what's to
come, of what will be and how the business condition will adapt, fluctuate, change,
and respond to the future conditions, and changes in the futuristic strategic
planning.
After Southwest Airlines Nonstop Culture Flying High with Transparency and
Empowerment has identified the possible uncertainties of the macro
environment, Southwest Airlines Nonstop Culture Flying High with
Transparency and Empowerment should decide on any two only. These can be:
o Changes in technological advancements and developments. These
changes can be in the form that the industry has progressed to install
more modern and contemporary technological developments.
o Changes in consumer demands and needs.
These two uncertainties of the future are those that will have the largest
impact and influence on the business.
The following section presents a brief analysis of the VRIN strategic tool as it is
applied to Southwest Airlines Nonstop Culture Flying High with Transparency and
Empowerment and its impact on the strategic direction.
4.1.1. Valuable
4.1.1.1. International distribution network
The company has an international distribution system with agents and contracts in
countries across the world. This helps the company in making sure that its products
are widely available and easily accessible to all consumers.
4.1.2. Rare
4.1.2.1. Use of progressive technology
The company makes use of progressive technology and invests in new technology to
help it make the business more effective and efficient. This is important for
maintaining competitive differentiation. The technology used by the company also
allows lower chances of human error and increases precision.
4.1.3. Inimitable
4.1.3.1. Human resource management
The company has taken part in exemplified human resource management in all its
function – from recruitment to training of talent management. This has allowed the
company to develop an inimitable resource that is aligned with the organizational
goals, and mission, and which is synonymous to the organization itself.
4.1.3.3. Innovation
The innovation at Southwest Airlines Nonstop Culture Flying High with Transparency
and Empowerment is an inimitable resource that allows the company to stay ahead
of the competition as well as maintain high leadership in the industry by having the
first mover advantage in its product portfolio continuously.
4.1.4. Non-substitutable
4.1.4.1. Brand recognition
The brand value and brand recognition enjoyed by Southwest Airlines Nonstop
Culture Flying High with Transparency and Empowerment is a non-substitutable
resource. The high brand recognition across different consumer group’s in different
countries allows the brand to enjoy high consumer ship, high sales, and a unique
bond with the consumers. This cannot be imitated at all by the competition as the
brand recognition and resonance has been built over the years through hard work
and quality deliverance.
4.2.1.3. Non-substitutable
For the time being, no competition of Southwest Airlines Nonstop Culture Flying
High with Transparency and Empowerment could match such an enormous
international presence in terms of quality and consistency. It would require critical
investment and assets to achieve this.
4.2.2.2. Rare
Other competition also offers different products that are offered by Southwest
Airlines Nonstop Culture Flying High with Transparency and Empowerment, which
means that it is not a rare resource for the company. This is because other players
also have access to similar products and portfolios.
4.2.2.3. Inimitable
Considering other businesses and players are now using this capacity as a means of
expansion and penetration, it can, therefore, be imitated.
4.2.3.2. Rare
Southwest Airlines Nonstop Culture Flying High with Transparency and
Empowerment is a contemporary brand name that has a premium touch to it and is
upscale, modern and lively. Most other companies and competing brands don't have
the quality and packaging to urge clients to engage in a way they do with Southwest
Airlines Nonstop Culture Flying High with Transparency and Empowerment .
4.2.3.3. Non-substitutable
It would be generally simple for other companies to revamp their packaging and
duplicate the plan of action of Southwest Airlines Nonstop Culture Flying High with
Transparency and Empowerment. In this way, the upscale and comfortable promise
of the offering by Southwest Airlines Nonstop Culture Flying High with Transparency
and Empowerment could be imitated.
4.3.1. Southwest Airlines Nonstop Culture Flying High with Transparency and
Empowerment: drawing value from VRIN/VRIO
4.3.3. Example from value framework for Southwest Airlines Nonstop Culture Flying
High with Transparency and Empowerment
4.3.4.1.2. Operations
Southwest Airlines Nonstop Culture Flying High with Transparency and
Empowerment operates internationally directly or indirectly. The company has
owned offshore shops, as well as stocks its products with other shops across
different countries.
4.3.4.1.5. Service
Southwest Airlines Nonstop Culture Flying High with Transparency and
Empowerment invests in customer service to develop customer loyalty and build
strong relations with its clients. The company invests in gaining and incorporating
customer feedback and in solving customer queries effectively.
4.3.4.2.4. Procurement
This involves purchasing the raw material for the final product. The company has
appointed agents that work for the company in different countries and regions to
purchase consistently high quality raw material so that the company can produce the
finest product qualities for delivering to the consumers.
The cost-based strategy and system are that – it includes Southwest Airlines Nonstop
Culture Flying High with Transparency and Empowerment being the pioneer
regarding cost in the industry and market where it operates. Just being among the
most minimal cost producers isn't adequate, as the company leaves itself wide open
to aggressive attacks by other producers and players in the industry. These players
may undermine Southwest Airlines Nonstop Culture Flying High with Transparency
and Empowerment ’s costs and in this way hinder the company’s endeavours
towards the expansion of its share of the overall market pie.
Access to the capital expected to put resources into innovation that will cut
expenses down.
Very proficient coordination’s.
A minimal effort base (work, materials, offices), and a method for
economically cutting expenses beneath those of different competing players.
5.1.3.2.1. Overall Cost Effectiveness through Cost Leadership and Cost Differentiation
5.2.1. The need for SWOT because of expanded operations of Southwest Airlines
Nonstop Culture Flying High with Transparency and Empowerment
5.2.2. Southwest Airlines Nonstop Culture Flying High with Transparency and
Empowerment Strengths (Internal Strategic Factors)
This section of the SWOT analysis model works with the inner variables that the
organization can use as competencies and strengths to address shortcomings and
ensure the business against rivalry. For this situation, Southwest Airlines Nonstop
Culture Flying High with Transparency and Empowerment ‘primary qualities are:
In the SWOT analysis model, the global distribution network through directly
owned subsidiaries, or contracts with third-party agents further strengths
Southwest Airlines Nonstop Culture Flying High with Transparency and
Empowerment by supporting activities.
For instance, the organization has a worldwide system of providers that are
deliberately chosen dependent on criteria relating to quality, for example, of
raw materials as has been discussed in the value chain - primary and supporting
activities.
5.2.3. Southwest Airlines Nonstop Culture Flying High with Transparency and
Empowerment Weaknesses (Internal Strategic Factors)
Business weaknesses or shortcomings are recognized in this part of the SWOT
analysis. Shortcomings are inward factors that diminish or cut off business
capabilities and strengths. Southwest Airlines Nonstop Culture Flying High with
Transparency and Empowerment shortcomings are as per the following:
5.2.3.2. Standard and benchmarked regulations and business procedures for all
portfolio items
5.2.3.2.1. Generalization
Likewise, this SWOT analysis highlights that generalized standards for all
portfolio products may be a weakness because it restrains the adaptability of
these products and items in the business.
5.2.3.2.2. Imitability
What's more, numerous Southwest Airlines Nonstop Culture Flying High with
Transparency and Empowerment items are imitable.
Several items in the portfolio have been imitated by completion, and are also
being provided by them at different price points.
Though the quality is unique to Southwest Airlines Nonstop Culture Flying
High with Transparency and Empowerment, the competing players have also
developed close enough, and acceptable products.
This business condition engages competition, as has been highlighted
already.
The internal factors in this section of the SWOT analysis of Southwest Airlines
Nonstop Culture Flying High with Transparency and Empowerment
demonstrate that the business must create qualities to diminish the
unfavourable impacts of impersonation and the impact of high value focuses on
the organization's share of the overall industry in the international and local
business.
5.2.4. Opportunities for Southwest Airlines Nonstop Culture Flying High with
Transparency and Empowerment(External Strategic Factors)
This section of the SWOT analysis and strategic model focuses on external
components that opportunities for business development and advancement. For this
situation, the key opportunities accessible to Southwest Airlines Nonstop Culture
Flying High with Transparency and Empowerment are:
The company can also formulate new B2B relations and contracts with other
companies and corporate entities.
The external key factors in this section of the SWOT analysis demonstrate
that Southwest Airlines Nonstop Culture Flying High with Transparency and
Empowerment can improve its industry position by building up its activities to
make use of the opportunities in the international business markets.
5.2.5. Threats facing Southwest Airlines Nonstop Culture Flying High with
Transparency and Empowerment(External Strategic Factors)
Threats against the Southwest Airlines Nonstop Culture Flying High with
Transparency and Empowerment business are distinguished in this piece of the
SWOT analysis. Threats are external components that decrease or breaking point of
business execution. In this case of Southwest Airlines Nonstop Culture Flying High
with Transparency and Empowerment, the following section looks at, and assesses
threats that apply to the organization in question:
TOWS analysis will allow Southwest Airlines Nonstop Culture Flying High with
Transparency and Empowerment to identify and understand the strategic choices
and future strategic options and directions available to the company. The TOWS
matrix and analysis will help Southwest Airlines Nonstop Culture Flying High with
Transparency and Empowerment to look at various possible future and long term
situations, and ill force Southwest Airlines Nonstop Culture Flying High with
Transparency and Empowerment to look at these options by questioning strategic
directives such as:
How will Southwest Airlines Nonstop Culture Flying High with Transparency
and Empowerment make the most of its strengths and core competencies?
How will Southwest Airlines Nonstop Culture Flying High with Transparency
and Empowerment Circumvent its weaknesses and shortcomings?
How will Southwest Airlines Nonstop Culture Flying High with Transparency
and Empowerment capitalize on the various opportunities present in the
business environment?
How will Southwest Airlines Nonstop Culture Flying High with Transparency
and Empowerment ward off, and manage the threats that are present in the
external business environment?
The analysis of the SWOT and the subsequent assessment and development of the
TOWS matrix will allow the Southwest Airlines Nonstop Culture Flying High with
Transparency and Empowerment to be able to identify the following answers:
Strengths Weakness
TWOS Matrix
Leading premium company that Major dependence
operates internationally country of origin m
Leading presence across countries Despite being in o
Reasonable control over production has standard proce
and distribution due to backward for all portfolio item
and forward integration Imitability possible
New South Asian and Asia Expanding into Asia Pacific region Increasing more
Pacific regions available and stabilizing emerging markets by country of origin,
for expansion – emerging opening new stores and developing the world – espec
markets new products such as India, Chin
Acquisition of medium-
sized similar companies
and shops in developing
countries
The following section highlights the various strategies that may be used through the
Ansoff matrix. These strategies have been highlighted and identified through
vigorous research methodologies, as well as through expert analyst data and
opinion.
The company can expand into other markets through its previous experience,
as well as through partnerships and contracts with other agents and parties.
The company can also develop subsidiaries, as well as offer its products
through franchising as well as licensing.
The geographical expansion is suggested into emerging economies because
of the favourable income levels of the consumers, as well as the growing
infrastructure.
The company should have dedicate incubation labs for the development of
new products.
This means that this development should be a focused and separate entity
that should focus on the company’s innovation.
The company should also hire the right talent for business development and
innovation to be able to achieve targets and goals accordingly.
The company should also have a focused and strategic budget for marketing
and communications allocated for new product development.
This is because the company will need to increase the appeal, as well as
develop functional and emotional appeals and characteristics of the new
product.
Communicate with the consumers to enhance sales as well as increase
likeability and rate of consumption and trial.
5.5.1. How Southwest Airlines Nonstop Culture Flying High with Transparency and
Empowerment can strengthen its strategic position using SAf criteria
When Southwest Airlines Nonstop Culture Flying High with Transparency and
Empowerment is deciding upon a certain strategic direction for the future, it
will face challenges.
Choosing the right strategy at the right time can be a daunting task for
managers.
It is therefore important that managers look at the strategy from aspects of
its value and viability.
The principal thing the managers of Southwest Airlines Nonstop Culture
Flying High with Transparency and Empowerment will have to do is settle on a
foundation by which to evaluate the different strategic alternatives.
They will also need to choose a viable methodology is to assess the different
strategies independently.
Strategies can be evaluated and assessed using criteria of suitability,
acceptability and feasibility (SAF).
The following section weighs different strategies and possible future
directives for Southwest Airlines Nonstop Culture Flying High with Transparency
and Empowerment based on the SAF criteria.
5.5.2.2. Acceptability
5.5.2.2.1. Alignment with organizational goals
The strategy is acceptable because it is in line with the company’s goals and
mission.
Also, it is also in line with the internal marketing and culture of the
organization.
As such, the strategy does not pose any risk – financially and otherwise and is
also palatable for stakeholder reactions.
Lastly, the strategy promises to give high returns. Overall, the strategy
appears to be highly acceptable.
5.5.2.3. Feasibility
5.5.2.3.1. Market research and financial cushioning
5.5.3.1.2. Innovation
5.5.3.2. Acceptability
5.5.3.2.1. Risk of financial investment
5.5.3.3. Feasibility
5.5.3.3.1. Market research and financial cushioning
This strategy is suitable because the company has high and focused
budgeting for marketing and communications.
This would also allow Southwest Airlines Nonstop Culture Flying High with
Transparency and Empowerment to withdraw from failing markets or markets
that have a weak share, and gain access to rising markets.
The company will be able to exploit its research and development for
strategic marketing
Southwest Airlines Nonstop Culture Flying High with Transparency and
Empowerment will also make use of existing systems and products to reach
new consumer groups through marketing.
5.5.4.2. Acceptability
5.5.4.2.1. Return on investment
5.5.4.3. Feasibility
5.5.4.3.1. Market research and financial cushioning
The strategy is highly feasible because the company has a strong financial
standing.
This means that the company can afford to increases budget for marketing
purposes.
However, for the stagey to be successful, it is important that the company
aces sure that all promotional campaigns developed are in sync with consumer
needs, demands and behaviour.
This is again possible for the company because of its investment in research
and development.
6. FINAL RECOMMENDATIONS
Based on the overall internal and external analysis done for Southwest Airlines
Nonstop Culture Flying High with Transparency and Empowerment, this section will
offer recommendations which will help the company take on strategic directions that
will enhance its core competencies and capabilities, as well as reduce its chances for
risks and threats? The following recommendations are thus made for Southwest
Airlines Nonstop Culture Flying High with Transparency and Empowerment:
6.1. Strengthen distribution network
6.1.1. Control
This is an important strategic recommendation as it will allow higher control to the
company over its products in different markets. The company will be able to control
where its products are placed, and thereby, will also be able to enhance the
accessibility and easy availability of its products.
By strengthening the value network further, and by adding quality and enhanced
elements at different stages, the company will be able to maintain competitive
advantage, as well as put off new players from the industry by increasing barriers to
entry. This will allow the company to maintain sustainable competitiveness over
other players, as well as maintain a possible leadership position in the local and
international markets and industry.
7. References
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