6392/fms/mba/f13
Point-to-point service is their foundation strategy, whole organizational leadership,values,and culture, principals and market strategies revolves around this and on this base strategy having weathered an unimaginable series of events he is in top of world. southwest paid a lower wages to labor by other airline face a profitable and also southwest have a real edge to strong balance sheet in industry never got dangoursly in debt Southwest will lose their competitive advantage by converting into hub-and-spoke service as there are already so many airlines flying its use strategy Southwest services were based on a theme of love, and their passengers love this uniqueness where he is in top, so they can’t change it.
To impact of events of 9/11- resume Pre position Southwest Airline should adopt hub-and-spoke service or continue with existing point-to-point service?
After the 9/11 attack airline industries faces many difficult problems and so as southwest also.(security problem,govt restrictions top in difficulties situations)But it doesn’t mean that you change your whole organizational structure . Inspite of new challenges of taxes southwest management decision ultimately to increase schedule and employement .The value of competitotors stock immedietley increase from 11% to 74% southwest market value quickly rise inspite fact that lower ticket price, higher costs, and new taxes.
Only in point-to-point services Southwest is able to provide frequent flights per day, so in case of missing a flight passengers could catch the next one, but due to government regulation baggage-handling become time consuming process and effect turnaround time significantly, here southwest needs to encourage passengers to cooperate with agents and to complete this process early before flight time. Southwest to look at other option for resuming their pre 9/11 position.