Business Case Analysis

BUSINESS CASE ANALYSIS

Running Head : Business Case Analysis

BUSINESS CASE ANALYSIS

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Executive Summary

Southwest Airline is one of the strongest Low-Cost-Carrier in America and becomes a model of budget airlines worldwide . The company represents a unique part of the industry that sees the business in its own way and proven right by actual sales number

In addition , the company is a blend of cheap flights , on-time services and one of the best qualities of customer service in the industry Within this , we are investigating

the strategy of the company taking account of its vision and mission statement , strategic positioning and implementation , and financial development

Concerning the decision to be a low cost carrier , analysts say that it is critical and excellent decision since budget airlines that exhibit the cost-leadership strategy become the future of the international airline industry

However , in the strategic positioning point of view , we see that Southwest Airline requires a thorough attention from the company 's management for two reasons . First , the company still lacks of wider market coverage . Perhaps , Southwest Airline pays attention too much on financial performance in to choose the most profitable routes Moreover , there are some states that have few flights of Southwest and the company does not serve transnational flights . Opening several new routes might lower the present profitability but will enhance possibilities of future expansions

The second issue is the company 's mission statement , which we consider it lacks of elements that make them as good mission statement . In the company 's mission statement , the company fails to address cost-leadership strategy , which becomes their core competences of their entire operations . Under such circumstances , the company 's mission statement should explain more about how the company provides customers with low fares and on time services , what they really need in the airline industry . The mission statement should also reveal that customer value is more than just luxurious customer service , but also every other aspect including fares

In addition to strategic analysis , this also provides several business analysis tools including EFE Matrix , IFE Matrix , Competitive Pro Matrix , SWOT Matrix , and QSPM matrix to evaluate existing strategy of Southwest Airlines . The use of evaluation tools will lead us to define a new strategy that will enhance corporate performance in years to come . The results of several business analysis tools are Southwest Airline needs to expand their corporate operations by opening new flight routes into unexplored domestic market in United States . The financial impact of the strategy is a gradual increase in profit due to the new potential markets . The increase will need some time to occur because the market will need periods of adjusting themselves to Southwest Airlines

In the competitive pro matrix , we note that Southwest Airlines has gained a lot of advantage from its position as a low cost carrier especially in price competitiveness , market share and customer loyalty Meanwhile from elaborating the SWOT Analysis , we provide four strategies as combinations of the company...