The example of Southwest Airlines (SWA) emphasizes that a operational effectiveness is not a strategy, but operational efficiency once applied to a strategy can result to great success. The example shows that a real competitive strategy is ionly about doing things deliberately in a different way so as to come up with a mix of unique values and unique activities. South West Airlines found achance to provide low cost services, standardized flights in the United Styates of America , for a value based, though low cost position in an industry where the competitors have found it difficult to meet the same cost structure. The other airlines cannot up any competition on the chosen activities and value combination. It is only a strategy that has been devised by the Southwest Airline (SWA), and her competitors are not in a position to implement it.
Theoretically, this doesn’t seem like a problem, the old guys are moving out and new, young pilots can take their place… Wrong. The general public’s lack of interest in aviation is not providing enough new pilots to fill the shoes of the
[2] It was founded by Rollin King and Herb Kelleher in 1967 and its current CEO is Gary C. Kelly. Southwest Airlines is best known for its operational excellence, specifically the “low cost carrier” (LCC) model. The globally admired attributes of LCC are as follows: [3] 1. One Plane model instead of many 2. Point-to-point route structure instead of hub-and-spoke model 3.
Such a model acts as a SE in the sense of only supporting the planning and comparing fares for the users and when the user want to book the tickets he is referred to an OTA website. However, startups with the hybrid will not be scanning different OTAs to find cheapest price. A startup would sign a partnership agreement with only one OTA. This agreement secures higher commission rates from references for the startup company as well as any required support by the already established OTA. The disadvantages of such model are the limited prices flexibility and the unavoidable usage of the same GDS as the OTA and not any other GDS.
Now the last benefit is that pilots would not lose their vision (permenent / temporarily) to this problem anymore therefore would not ask for the airplane company to pay them for their damaged vision. It would spare a lot of money (even though it has only happened to 35 pilots) and all that medic hassle. Now lets focus on only one benefit: Pilots avoiding damage to their eye(pilots not suffering
Apart from this, the manager of ATA Airlines failed to estimate the demand for flight will increase in future, so the manager reduces the capacity of the organization because of having the loss for a long time (United State Department of Transportation 2005). Therefore, the vision of manager of Singapore Airlines is very well, he can successfully evaluate the demand for flight and make a correct decision to help the organization make more profit. However, the manager of ATA Airlines in order to maintain profit of organization and failed to estimate the income
Local P9 had exactly contradicting interests as Hormel. They wanted a wage increase to offset the pay cuts from the prior years. Local P9ers felt they were the right to ask for increased wages when existing contracts were about to expire because Hormel was still profitable and didn’t have to go through same plight as other players in the industry. Unfortunately, Local P9 had a weak position in this negotiation with the exception of a lone power to strike. They were emotionally driven and sought an outcome that didn’t account for their substantially weaker power
Since the aircraft are in the same model, it allows minimization of training and also maintenance cost because Ryanair does not need to hire an expert for every different model of aircraft. This controlling cost method can ensure the Ryanair to remain focus on their mission as offering low fares to their customer. Other than that, Ryanair Holding does not need to hire more staff since the customers can book, check in and boarding on their own. With the current technology development, people would prefer to do everything in online as it can save their time and also other cost. So Ryanair take this opportunity to cut cost in hiring staff at check-in desks.
• Dynamic Pricing o With a dynamic fare structure aimed at stimulating more and more travelers to take-up air travel through offering affordable prices, LCCs like SpiceJet offers fares that are significantly lower than most airlines. On the other hand, premium carriers like Jet Airlines, offer comfort, professionalism and a customer friendly atmosphere. • Focus on Safety o All airlines invests heavily in safety, impeccable maintenance and a high level of expertise. Experienced pilots, engineers and maintenance crew go through rigorous training and are hand-picked for their technical knowledge and expertise so that there is no cut-back in this key area of modern day flying. They also offer travel insurance services for customers via TATA AIG for various unforeseen circumstances.
Closest competitor of Indigo is SpiceJet followed by GoAir [Exhibit 3]. Below is brief description about each of them: SpiceJet is a low-cost airline based in New Delhi, India. Spice Jet’s mission is to become India’s preferred low cost airline, delivering the lowest air fares with the highest consumer value, to price sensitive consumers. Its vision is to ensure that flying is no longer confined to business travelers, but is affordable for everyone and thus the tagline ‘flying for everyone’ Spice Jet airways began its operations in May 2005. SpiceJet has chosen a single aircraft type fleet which allows for greater efficiency in maintenance, and supports the low-cost structure.