Strategic Choices Term Paper Example | Topics and Well Written Essays - 750 words

Strategic Choices - Term Paper Example   Low cost of the Southwest airline helps to give all persons to fly with lowest rate.   It helps to offer the services or product that is different from its existing competitors.   It helps to create unique identity towards the product or service offered. It will help to  set up assets or competencies that competitors are not capable to copy or build up on their own. Weaknesses-There is no prescribed constructions for union or involvement of labor in management decision making.   This will leads to various problems within the labor and union.   Union and labor involvement of the competitor firms is different from each other.   Focus on the particular area of the weakness helps to overcome the problems certain extent.   This strategy will helps to overcome the problem that may raised due to this particular weakness. Opportunities- Technology has enhanced methods of advertisement and also enhancing methods of ticking for ex: Internet etc.   This strategy will helps t o better utilization of technology at lowest possible rate of expenses.   Use the technology that is used for the advertisement is different from that of the competitors that will helps attract more customers,   This strategy helps to focus on the particular kind of advertisement to capture the mind of customers.   This is one of the most efficient strategies that will provide an opportunity to build their own position in the society. Threats-Interruption to operations due to various types of adverse circumstances and air-traffic control connected constraints.   This strategy helps to offer low cost services at the time of adverse conditions.   Economic condition of the country is different from each other. Differentiation strategy helps to offer service according to the condition of the country.   This strategy gives attention only the negative condition of the nations to provide the better services. Southwest could also employ the point’s redemption plan as a ch ance to construct partnerships exterior of the airline business and arrive at to new markets. Porter argues that the strengths of an ultimately fall under one of the two headings, and they are â€Å"differentiation† and â€Å"cost advantage† (Differentiation Advantage, n,d, pg.5). By applying these strengths either on a narrow range on a wider scope three generic strategies can be formulated namely differentiation, cost leadership, and focus. These strategies are applied at the unit level of the business. â€Å"If the primary determinant of a firm's profitability is the attractiveness of the industry in which it operates, an important secondary determinant is its position within that industry† (Porter’s Generic Strategies 1999 para 1). They are termed generic strategies for the reason that they are not depended on any industry or firm. A firm generates its value by performing a sequence of activities which Porter recognizes as value chain. In addition to the organizations’ own value-creating activities, the business functions in a value scheme of vertical activities which consist of upstream dealers and downstream channel members. â€Å"Four distinct strategies we use to analyze strategic options, although there are various approaches to achieving these strategies employed by different firms. They are: †¢ Cost leadership †¢ Differentiation †¢ Niche focus †¢