EXECUTIVE SUMMARY
southwest Airlines has come across some issues and the one with the most refer is expansion. Southwest must realise the current and forecasted demand, find decent facilities, keep their strategy coherent and consistent, and ensure that the entry into a pertly grocery store is timely. These issues main constraint is finding facilities at a low cost to remain profitable. What has to be taken into account would be sensitive construction costs in a major(ip) city airport, addition of two new gates, more assiduity costs, etc.
The management of Southwest must try to keep its competitive returns and strategic coherence when confront with future expansion decisions. The flight path must make legitimate that any expansion decisions are consistent with its absolutely-haul, high frequency, low-cost, luv strategy. contender in the airline industry is tough, but also the gamble of substitutes to air travel threatens to take travelers out of airplanes.
Southwests main advantage is their price (as much as 80% when compared to other major airlines). This strategy is highly sustainable, dramatically increasing their size of the market where they enter.
From the three routes given, we chose that Southwest should implement the Baltimore - Chicago route, since financially it seems sustainable. The labor conditions in both of these airports are good (there is a muss of room for expansion), and the route is about 611 miles long, which still constitutes a short haul route.
PROBLEM STATEMENT
Despite the overwhelming success Southwest has maintained, the airlines does face some(prenominal) major issues that play vital roles to its continued profitability. Based on a conservative appendage strategy, Southwests top concern is expansion. The airline faces an urgent expansion decision regarding where and how to commit two new Boeing 737s into service.
This decision is comprised of several important components. Southwest must meet the current...
Excellent analysis of the overall performance. The essay was structured in a flowing manner. Good work.
Is adding more routes only growh strategy for Southwest Airlines?
I think that Southwest Airlines should have more growth options, such as more 737 purchase to keep high-frequeny flights.
This composing certainly gave me an insight to prooceed on with my paper. The flow of the paper is flavorless and statements were back-up by facts. Logical suggestion gaven too...
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