Southwest Airlines TOWS Exercise- An Analysis of Strategy

Southwest Airlines TOWS Exercise- An Analysis of Strategy

I’m matching using the S3:O3 typology:

‘Customer satisfaction rankings’

‘Increase in online marketing, promotions and reward programs’

One of Southwest Airlines’ strengths is that it has a higher customer satisfaction ranking. In this view, it means that the quality of air travel that it lends is high quality in order to get the high rankings. Out of this factor, the organization can use this strength to capitalize on the opportunity of advancing its marketing capabilities to online marketing, promotions, and reward programs (Adeniran, Egwuonwu, and Egwuonwu, 2016). The idea behind this is that the organization can bolster these opportunities to first ensure that it has returning customers through reward programs. This is where the organization can develop a program for rewarding return customers by giving them discounts on their air tickets, flying them free of charge, giving them extra services for free, or even making their travel luxurious by changing their air ticket to a higher class from the one that they had boarded.

Additionally, in the same view, the organization can also capitalize on this by marketing itself online. Southwest Airlines can do this by scaling and broadening its market to other routes by creating an online service where new customers can see their rankings and feedback from other customers (Blair, 2017). Out of this, the organization can attract new customers, citing that most of them are pulled to enjoy air travel if the satisfaction rankings are at par. Promotions can also be carried out through the same online page for marketing, where the airline can give discounts to first-time travelers using the airlines. From the above strategy, the airline company can broaden its market capacity and, therefore, increase its profitability and brand image at the same time.

References

Adeniran, J. A., Egwuonwu, T. K., & Egwuonwu, C. O. (2016). The impact of sales promotions on sales turnover in the airlines industry in Nigeria. International Journal of Marketing Studies, 8(3), 99. https://doi.org/10.5539/ijms.v8n3p99

Blair, M. K. (2017). Using digital and social media platforms for social marketing. Oxford Medicine Online. https://doi.org/10.1093/med/9780198717690.003.0012

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Please read the posted articles on the TOWS Matrix and Executive Summary, as well as the Southwest Airlines TOWS Exercise. The Southwest Air exercise is an actual TOWS Matrix, EFE, and IFE that was handed in by one of your fellow students about four or so years ago.

Southwest Airlines TOWS Exercise- An Analysis of Strategy

1. For your first post, please create and submit one strategy for Southwest Airlines in any of the four quadrants available to you by telling us;

What factors are you matching using the (Sx, Sx, Sx: Ox) typology (see the TOWS Matrix document for a more detailed explanation).
What type of strategy is it that you are recommending (from the Strategic Options handout)
Give the strategy a title like “Project: Somesuch” or “Operation Instant Classic.”
Describe your strategy and tell me why it makes sense for Southwest.
Basically what I am asking for it that you create and present a strategy for Southwest that makes sense for the firm given the information in the document.
2. Comment on the strategies presented by two of your fellow students. Can their strategy be made better? Does a better choice exist?

To illustrate, consider the TOWS Matrix for Starbucks in the example at the end of the TOWS Matrix and Executive Summary document. Here is another strategy that I came up with that is not in the Matrix. Note that this project was submitted several years ago. Try to use this format when presenting your strategy:

“(W3:T3)

Concentric Diversification

“Project Instant Competition.”

The idea here is for Starbucks to try to overcome its image of engaging in tax evasion, an image that can be altered through ethical, long-term operation and large-scale public apology, and then re-introduce instant espresso and other coffee products throughout Europe. In order to compete with Nestle, the largest and most well-established coffee seller in Europe, they will need to effectively address their image issue first, and then address their pricing weaknesses on the road to introducing their instant coffee variations. These new product variations should result in quality instant products that compete with Nespresso products through price (no machine is needed as one needs no special equipment for Starbucks’ instant products), convenience, and variety. At the current time, there is a gap in available instant products, so Starbucks should try to carve out a niche between expensive Nespresso products and cheaper, less-quality instant products. European expansion is central to any growth strategy on their part, and taking on the Elephant in the Room, Nestle will be difficult, but by avoiding the direct threat of Nestle by making an indirect inroad into the Euro coffee market.”