Strategic Audit Report Template

Diversification is the most effective strategy for the company, with existing strategies that can help Southwest Airlines tap the international market. The company has a dedicated and motivated team of employees. These employees will gain a competitive advantage in the global market. While competition from other Airlines may be stiff, a strategic and gradual penetration will be fruitful (Ambrose & Waguespack, 2021). The company's cost management will also make it possible to incur the lowest costs possible in entering the new markets. The success in the local market will be replicated in international markets, and the outcome will be increased market share, enhanced brand value, and more profits.

Diversification reduces the risk of loss. Currently, the company relied on the local market apart from the few international markets it ventured into recently. There is a higher risk of losses due to market uncertainties. It is rare for uncertainty to befall the whole world, and by tapping different markets, the company minimizes the risk of losses. By tapping the international market, the company will expose itself to more opportunities. Southwest Airlines will discover more gaps in these markets and create value that other Airlines may not have made before.

References

Amankwah-Amoah, J. (2021). COVID‐19 pandemic and innovation activities in the global airline industry: A review. Environment International, 156, 106719.

Ambrose, S., & Waguespack, B (2021). Fundamentals of Airline Marketing: Strategies for Success in a Hyper-competitive Environment.