Southwest Airlines Company is one of the largest airlines in the United States. The company was founded in 1967 and now serves domestic and international airline customers (Southwest Airlines, 2020). Low-cost air travel has made the company a household name, and it is always striving to improve its customer service platform (Southwest Airlines, 2020). As a Southwest Airlines consultant, the following credential is essential for the report, providing expressive and in-depth information about the company’s corporate and management strategies. Southwest Airlines’ strategic management capabilities can be enhanced using the recommendations in this report, which were based on in-depth research.
Strategy Recommendation: Analysis of Current Strategies and Issues
It is becoming increasingly difficult for the company to achieve its ultimate goal of providing the most outstanding quality customer service while maintaining a sense of focus, warmth, and d friendship among its staff members. The winning strategy can help the company continue to develop the most significant shift due to the gap in the market. According to its mission statement, values, and vision, Southwest Airlines has been successful (Southwest Airlines, 2020). Including one of the essential factors of the company’s success will always be a part of the company’s ongoing good development. Since its inception in 1998, the brand new $10 million Flight Operations Training Center has trained more than 2,600 pilots worldwide (Southwest Airlines, 2020). However, the pandemic has affected the number of passengers who travel by air, and the volume of passengers is an essential metric for low-cost airlines such as Southwest. Therefore, the business has to adjust to the new environment by cutting costs and optimizing expenses.
Strategy Southwest Airlines is Following
Differentiation and cost leadership are the two types of strategies that Southwest Airlines integrates. Cost leadership is achieved through a reduction in customer costs relative to its existing and prospective competitors due to the company’s cost leadership strategy. The approach has been integrated into multiple sets of activities performed to manufacture goods and services with qualities that customers approve it. Airline consolidation to form larger conglomerates has been a way for the company to stay relevant and competitive in terms of pricing over the years (Verasai, 2018). As part of its differentiation strategy, the company takes a comprehensive approach to creating services and products that customers see as having a unique perspective from the rest of the market. The organization achieves an unattainable result by implementing integrated cost, differentiation, and leadership.
HRM Implications, Business Strategy, and HR Strategy
Human resource development opportunities for the company include employee training and education, career advancement, performance monitoring, coaching, mentoring, succession, suitable personnel identification, tuition aid, and organizational development. HRM implications of Southwest airlines are divided into acquisition, development, and termination. Southwest Airlines successfully finalized the acquisition of all of the outstanding shares of stock held by AirTran Holdings, Inc, which was formerly known as AirTran Airways’ parent company (AirTran) (Southwest Airlines, 2020). Southwest Airlines applauded the acquisition of AirTran because it provided the company with access to Atlanta Hartsfield International Airport, which had played a significant role in the airline’s network.
Consequently, the development is Southwest’s 18-month work rotational program designed to help early-career airline employees get off to a good start by exposing them to new and exciting challenges and opportunities inside Southwest Airlines. A candidate will be offered a position in a leadership capacity within an operation if they can complete the lengthy program that lasts for 18 months (Southwest Airlines, 2020). When competing with other airlines, Southwest Airlines has built a competitive edge by refusing to give services that other airlines can provide while also focusing on providing air travel to its consumers at a minimal cost.
Training certifications are an essential part of the company’s efforts to increase the quality of its workforce. As a result, Southwest Airlines has become one of the most successful and competitive companies in the United States (Southwest Airlines, 2020; Asahi & Murakami, 2017). It is permitted, though, because it is a problem that enhances human abilities. Employees must avoid conflict as much as possible as part of the company’s conflict management strategy. A company’s culture is affected by its business strategies, and this shows that a people-oriented airline relies on an approachable and pleasant development toward its employees to succeed.
Asahi, R., & Murakami, H. (2017). Effects of Southwest Airlines’ entry and airport dominance. Journal of Air Transport Management, 64, 86-90. doi: 10.1016/j.jairtraman.2017.06.029
Southwest Airlines (2020). Purpose, vision, and the Southwest way. Web.
Verasai, A. (2018). The Southwest Airlines HR success story you’ll want to read today. Web.