Business Strategic Choice and Evaluation Term Paper

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While luggage fees produced nearly $1.7 billion for the industry, Southwest drew the line. It made its Bags Fly Free strategy the focus of its promotion and advertising campaign (Mouawad, 2010).

Southwest's principal challenge going forward is going to be merging with AirTran and continuing to realize growth. The attainment of AirTran Airways by Southwest Airlines will join together two huge corporations and generate one even grander low cost transporter. The joint carrier will profit from superior markets of degree and the incorporation of processes will be supported by large fleet unity. The consequence is a carrier that is more ready to meet the confrontations of a more and more competitive carrier surroundings and take benefit of tactical occasions better than ever before. This arrangement will benefit all shareholders by way of a growth of low prices for patrons, chances for workers of both corporations and for providers and sellers, and positive returns for stakeholders. In the end, they want to extend low fares even farther. Southwest persists to distinguish itself from other low fare airlines, by putting forward a dependable product with excellent customer service. Southwest Airlines is the country's biggest airline in provisions of originating domestic travelers boarded and is one of the most respected carriers in the world known for its obligation to the triple bottom line of performance, people, and the planet (Two Great Airlines Join Forces: AirTran Airways Agrees to Acquisition by Southwest Airlines, 2010).

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Southwest needs to integrate AirTrans business into theirs while attempting to adhere to the policies that have gotten them where they are today. The first thing that they need to do is maximize their Bags Fly Free policy by changing AirTrans policy to match their own. This policy has generated them a tremendous amount of business since it was implemented. In order to compete in the airline industry today, a company must have something to give to passengers that no one else has to offer. This policy is the one thing that Southwest has that no one else does.

The next thing that they need to do is to try and maintain the culture that they currently have, as their culture is their biggest competitive strength. Southwest Airlines has fashioned its culture and its character from the inside out. It values a contented labor force, and thinks that its many happy workers will keep patrons coming back. Southwest is thought to be ahead of the game in terms of fostering happy employees, and recent surveys have shown that patrons are starting to pay more notice to how workers are treated. By making its workers their top concern, Southwest has in reality made its patrons come first, as well (Southwest's Secret to a Positive Corporate Culture: Its Employees, n.d.). Incorporating AirTran's workers into this culture is going to be the key to Southwest's victory in the end......

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