Southwest Airlines

Introduction By October 2002, southwestern United States Airlines had apparently weathered the initial crisis to the flight path industry that resulted from the September 11, 2001 (9/11) terrorist attacks. Most of the galactic national carriers had experienced huge losses in demand, profitability and market share, while in contrast Southwests low-fare operations had thrived, even in the face of declining earnings. Yet, only a division after the attacks, Southwest and the industry in general face up still unknown future changes to its operating environment. There was already a new(a) dynamic of security becoming a priority consideration, and new governmental directives and taxes meant to ensure and maintain that security. This new security dynamic had already impinged on Southwests depict operating strategy of customer-friendly service, due to boarding delays and resulting lower on-time comer performance levels. Consequently, because of decreased demand due to lingering customer fears, depressed macroeconomic conditions, new federal taxes, and the perception of declining service, Southwest began to experience what other carriers already had: reduced revenue, increased cost and declining profitability.

Therefore, post-9/11 and amid the general industry malaise, Southwests care is challenged with strategical decisions regarding the rate and manner of future growth. Also, the changes to the operating environment, such as increased security requirements, taxation, restrictive governmental regulations, and unpredictable responses on the part of competitors, created challenges to Southwests operating strategy of offering a differentiated low-cost, customer-friendly service. Consequently, the central issue facing Southwests management is: How should Southwests future growth strategy be delimit and handd, given a crippled airline industry? In addition, what changes to the airlines operating strategy should be implemented, and in what ways, to achieve this growth, given the... If you want to get a full essay, set it on our website: Orderessay

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