Southwest Airlines Term Paper Example | Topics and Well Written Essays - 750 words

Southwest Airlines - Term written report ExampleEntering a new market requires new strategies that would consider bigger environment (Kotler, 1994). trance the company whitethorn have attained success by adopting a low-cost strategy in the short-haul business, the same may not be applicable in the long-haul as part of its festering. Past exertion could be claimed as a sign of companys strength to face the future. To argue that it thunder mug generally help a company to predict its future performance may be part logical but the future does have different challenges. Past conditions which may no longer be present or in the future. It, therefore, needs a new strategy. The case facts provide that the long-haul offers a cast down cost per ASM at 4 cents than short-haul at below 7.5 cents. Looking at these figures appears encouraging but the strategies for the long-haul may be different because of different variables to address. The rules of competitions would be different. Since i t is the bigger market, the general strategy of cost leadership may no longer be applicable as this would require a lower the attainment of economies of dental plate (Slavin and Slavin, 2010). For the company to do these, it may have to match successful companies strategies in the long-haul. This may require more capital investment from the company. This could be a problem if the company cannot generate the required capital for growth (Gitman and McDaniel, 2008). If ever the company continues with the long-haul, it must only limit its operation that could be justified in equipment casualty of its profitability.