Southwest Airlines is considering expanding service to New York La Guardia airport but faces challenges from changing market conditions. The document analyzes 3 alternatives: 1) Focus on profitable domestic regions instead of expanding internationally. 2) Form a strategic alliance with a European low-cost airline to enter that market. 3) Remain focused on expanding domestically until international markets stabilize.
Southwest Airlines is considering expanding service to New York La Guardia airport but faces challenges from changing market conditions. The document analyzes 3 alternatives: 1) Focus on profitable domestic regions instead of expanding internationally. 2) Form a strategic alliance with a European low-cost airline to enter that market. 3) Remain focused on expanding domestically until international markets stabilize.
Southwest Airlines is considering expanding service to New York La Guardia airport but faces challenges from changing market conditions. The document analyzes 3 alternatives: 1) Focus on profitable domestic regions instead of expanding internationally. 2) Form a strategic alliance with a European low-cost airline to enter that market. 3) Remain focused on expanding domestically until international markets stabilize.
Southwest Airlines is considering expanding service to New York La Guardia airport but faces challenges from changing market conditions. The document analyzes 3 alternatives: 1) Focus on profitable domestic regions instead of expanding internationally. 2) Form a strategic alliance with a European low-cost airline to enter that market. 3) Remain focused on expanding domestically until international markets stabilize.
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CASE STUDY SOUTHWEST AIRLINES
SUBMITTED BY: MANSI NAYAK ROLL NO: 30
As per the case should southwest airlines start initiating service to New York La Guardia airport, which is not suitable to cope efficiently in the fast changing market conditions in context of cost of fuel, fare, changing consumer need and different technology?
ALTERNATIVE 1. Alternative for Southwest is to down scope its current market segment, and focus on a specific region of the country that is most prosperous for the firm. The current competitive landscape for the airline industry is changing so rapidly that it is opening up more opportunities for firms to enter into new markets. 2. The next strategic alternative for SWA would be to enter the second largest airline market through a strategic alliance with a fellow low-cost
European airline. This would reduce Southwests market risk, and allow them to enter the new market quicker. All of the firms are trying to capture as much of the European market share as quickly as possible. No firm can completely imitate all Southwests core competencies perfectly, many of these low-cost replicas have successfully earned consistent above average returns. This could indicate a potential strategic opportunity for SWA to expand its market share
3. The most practical strategic alternative for Southwest Airlines under the current uncertain conditions of the airline industry is to remain focused on expanding its interests in the domestic market. This will more likely ensure future prosperity until international markets settle down.
