BGMT 495 LA (Zeek the Geek only)

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STRATEGIC PLANNING 2

Priscilla LA 1

Southwest Airlines is a major competitor in the airline industry. Based on the SWOT analysis, the company is in a good position as far as offering unique services and building a solid customer base. According to the instructor's notes, Southwest would fall into the category of a hybrid competitive strategy called "best cost" (2014). This generic business level strategy is best suited for Southwest because it entails of products or services that offer unique value to customers, as compared to other airlines. According to the article, "The value leadership business-level strategy mixes cost and quality focus to find the perfect middle ground" (Ingram, n.d.). Southwest does not charge for the first two checked bags per customer on every flight. This is one of their stronger competitive advantages because it saves the customer a lot of money per trip. The other proposition is the lower cost in fare that is offered to the customer. The search for a flight reveals a price that includes all taxes, fees, and other costs associated. Southwest airlines uses the word "transfarency" and their catch phrase to describe that basically what you see is what you get. On the contrast, other airlines may list a flight for, say, $100, but by check-out time, other fees are added on to the final balance due.

Based on last week's analysis, Southwest's EFE received a score of 3.10, which proves their ability to take on opportunities, while lessening external threats. The company's IFE score, however, was slightly lower representing an average handle on their strengths and weaknesses as an organization. If Southwest can get on board (no pun intended) with the latest technology and boost up their customer service, a bit, I think they will improve in many areas of the business. For example, I was on their mobile app over the weekend trying to search international flights. Unfortunately, I received an error message that the app was unable to offer international services for no reason given. I can only imagine how a small factor such as that, has an affect on sales and the company overall. Our world has now become one that demands answers instantly, so an inconvenience like being unable to view international flight schedules via a mobile app can dramatically impact sales and customer satisfaction. In short, "business-level strategies guide companies' actions in each distinct line of business they are in" (Ingram, n.d.).

Resources

Ingram, D. (n.d.). Generic Business-Level Strategies. Retrieved September 12, 2016, from http://smallbusiness.chron.com/generic-business-level-strategies-2566.html

Strategic Management (2014). Washington, D.C.: The Saylor Foundation

Steven LA1:

For Subway the external factors are more critical to the company's success. Their opportunities are; brand loyalty, world wide recognition, and the healthiest fast food restaurant. Their threats are; strong competition, fixed clients, and natural disasters disrupting their suppliers. There are always going to be internal factors that will be of concern as well, however a company like this needs to concentrate on the external factors in order for the internal factors to be addressed. The External Factor Matrix prioritizes the opportunities and threats that a business is facing, (External Factor Evaluation, 2015).

External Factor Evaluation. (2015). Retrieved September 12, 2016, from http://www.maxi-pedia.com/EFE matrix external