Strategic Implementation
Spirit Airlines Strategic Choice and Evaluation-Week 4
University of Phoenix-STR 581
April 16, 2011
Strategic Choice and Evaluation
The next phase associated with strategy formulation is the strategic analysis and choice phase of the process. According to Pearce & Robinson (2013), “Business managers examine and choose a business strategy that allows their business to maintain or create a sustainable competitive advantage” (p. 238). Therefore, a business such as Spirit Airlines should evaluate their current strategy and determine areas of improvement in order to grow the business in a way that aligns with their company mission. The airline industry hosts a number of significant external factors that influence business strategies and alternatives. The purpose of this paper is to evaluation and present alternative strategies for Spirit Airline’s future growth as a company. Furthermore, the following paper will seek to identify the best value discipline for Spirit Airlines and in turn suggest a generic strategy and grand strategic for the organization.
Evaluation of Alternatives
Spirit Airlines is universally known for its ultra-low-cost, low-fare airline services that provide affordable travel opportunities throughout the United States, the Caribbean and Latin America (Spirit Airlines, 2012). Maintaining a strategically low-cost structure directly aligns with Spirit Airline’s target market, which allows the company to offer low priced basic services combined with a range of optional services for additional fees (Spirit Airline, 2012). The airline has earned a reputation for delivering cost effective fares and reliable on-time service with a no frills. In order to realize maximum growth, enhancements to the existing low cost strategy must be implemented to create a greater advantage in the market. Spirit Airlines has identified opportunities for growth with the release of the latest 10k Annual report. By the
University of Phoenix-STR 581
April 16, 2011
Strategic Choice and Evaluation
The next phase associated with strategy formulation is the strategic analysis and choice phase of the process. According to Pearce & Robinson (2013), “Business managers examine and choose a business strategy that allows their business to maintain or create a sustainable competitive advantage” (p. 238). Therefore, a business such as Spirit Airlines should evaluate their current strategy and determine areas of improvement in order to grow the business in a way that aligns with their company mission. The airline industry hosts a number of significant external factors that influence business strategies and alternatives. The purpose of this paper is to evaluation and present alternative strategies for Spirit Airline’s future growth as a company. Furthermore, the following paper will seek to identify the best value discipline for Spirit Airlines and in turn suggest a generic strategy and grand strategic for the organization.
Evaluation of Alternatives
Spirit Airlines is universally known for its ultra-low-cost, low-fare airline services that provide affordable travel opportunities throughout the United States, the Caribbean and Latin America (Spirit Airlines, 2012). Maintaining a strategically low-cost structure directly aligns with Spirit Airline’s target market, which allows the company to offer low priced basic services combined with a range of optional services for additional fees (Spirit Airline, 2012). The airline has earned a reputation for delivering cost effective fares and reliable on-time service with a no frills. In order to realize maximum growth, enhancements to the existing low cost strategy must be implemented to create a greater advantage in the market. Spirit Airlines has identified opportunities for growth with the release of the latest 10k Annual report. By the