Southwest Airlines Strategic Management Plan: Cost Leadership Advantage

Companies that are large and unique will usually be used as management lessons to be studied in various ways so that they become inspiration to be applied to the business that is being run at this time. Likewise, things related to southwest airlines strategic management plan because doing business in the aviation sector is a very strict thing because it has become a commodity. Especially during the pandemic, all flights are being restricted to prevent the spread of the virus.

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Cost leadership is the right thing to describe southwest airlines strategic management plan. How they can always run the company’s operations more efficiently is the key to how this company can succeed and win the existing competition. You can include your business in a strategy that provides differentiation by providing a lot of added value and charging an expensive rate, but does this match the market segment that you have served so far? If our answer to that is both, then we are actually planning the company to fail and not grow, because the resources we have will not be able to make it happen.

Southwest Airlines Strategy Case Study

Learning materials at the graduate level in business schools do use a lot of case studies because they can be more effective and make students feel more engaged. Likewise with southwest airlines strategic management plan which is usually often used as learning material because at one time this company met the criteria to discuss the chosen strategy to survive, even grow and develop. We can also look in detail at how this company analyzes, then formulates strategies to the technical stages of strategy implementation which is usually quite interesting, because the capital-intensive aviation world kills each other in order to become winners.

Southwest Airlines’ Competitive Advantage Case Study

In the business world, competition is absolute. Even if we are already a winner in market dominance we can always look for competitors with a wider spectrum. For example, in the case of southwest airlines strategic management plan, such as being a market leader, you must aim to be a winner in the field of transportation in general. Even if you are already a winner in that regard, then it can also be a business to experience the movement of people or goods from one point to another, because of course you will need large resources if you want to serve all available niche markets.

Southwest Airlines Business Level Strategy

Expensive aircraft prices and very strict permits because it involves the lives of many people, the entry barrier in this industry is very high. Not everyone can enter, and if you want to enter, you must be prepared with a very large amount of capital, not to mention promotional costs and so on that will make you come to a price war. But there are interesting things about southwest airlines strategic management plan that we can learn. That is to provide services that are not provided by other airlines. Only with a minimal additional cost, it is enough to determine consumers to choose to fly with this plane rather than take a plane from a competing airline.

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If you are in the role of a business school student or you have a business in the transportation sector such as buses for example, then studying southwest airlines strategic management plan might give you very good insight. This airline was once a prima donna and became the choice of many people who needed to travel. Determining a good strategy does require a lot of insight. Because it could be an idea that comes and becomes a solution is an idea that comes from another completely different field.

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