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Spirit Airlines Strategic Choice and Evaluation Strategic Choice and Evaluation The next phase associated with strategy formulation is the strategic analysis and choice phase of the process.
The airline industry hosts a number of significant external factors that influence business strategies and alternatives. 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, 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.
In addition, Spirit Airlines recognizes that its current conditions, if not corrected, will have a significant impact their competitive stance in the industry. The airline industry is highly competitive with respect to routes, fees and services and although Spirit is well known for lower fares, the fares alone will not protect the company from the risk of future failure.
The implementation of long term strategic goals will not only correct inefficiencies with the existing strategy, it will also focus on necessary improvements to help Spirit achieve its growth potential. Therefore, the solution will not only impact the present, but the future as well.
Value Discipline Best value disciplines are similar to generic strategies; however value disciplines place significant emphasis on superior customer value, using a selected discipline. The value discipline is comprised of three values: Previously it was established that Spirit Airlines would Essays on spirit to improve customer service interaction to experience growth in the future and gain sustainability among competitors in the market.
Of the three value discipline identified, customer intimacy is the strategy that would provide the most benefit for the organization. Spirit Airlines currently uses the operational excellence strategy, as the company focuses on providing its best value products at all times.
Spirit is able to offer these amenities at a low cost due to their reduced unit operating cost and other cost cutting strategies. For example, Spirit Airlines reduces overhead expenses in the area of marketing as it utilizes its website and direct-to-consumer marketing to drive ticket sales Spirit Airlines, The main focus of the airlines strategy is to deliver on its product base at competitively low prices by reducing overhead.
While Spirit Airlines has perfected their operational excellence discipline, there is room for improvement in the customer intimacy strategy. This strategy is precisely what Spirit Airlines is lacking in their current business model strategy.
Spirit Airlines contends that customer loyalty and intimacy are a huge risk for the organizations future success and their reputation Spirit Airlines Annual Report, Additionally, the implementation of this strategy will drive the airline to place emphasis on the profitability of a loyal customer relationship as opposed to the revenue of a ticket sale.
Generic Strategy Generic strategies enable the implementation of long term objectives and provide a foundation for how the organization will best influence the market.
Currently, Spirit Airlines utilizes the generic strategy of low-cost leadership to achieve and sustain their low cost position. Spirit has successful achieved this with a low-cost leadership strategy that ensures high aircraft utilization, operation of a modern single fleet type of Airbus, which is associated with lower maintenance costs and efficient flight scheduling Spirit, Continuous improvement of Grand Strategy A grand strategy is a long tern plan that provides an organization with basic direction for implementing its long term goals.
Additionally, grand strategies are imperative as they provide a basic timeframe for achieving long term business objectives.
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The grand strategy is comprised of 15 strategic principles: Spirit Airlines uses the innovation strategy to allow customers the freedom to choose buy-up options that appeal to them. Thereby unbundling packages and making it more affordable to travelers. According to the Spirit Airlines Annual Report, the organization lacks marketing alliances that may harm them in the future Spirit Airlines Annual Report, Many airlines including American, Delta, United and US Airways have marketing alliances with other airlines under which they market and advertise their status as a marketing alliance Spirit Airlines Annual Report, Such arrangements permit an airline to market flights operated by other alliance members as its own.
This increases destinations, connections and frequencies offered by the airline. Since one of Spirits long term objective is to gain a better competitive position in the market, the addition of a strategic alliance grand strategy would be best suited for the organization.
In the case of Spirit Airlines, the use of alliances between other organizations related to the airline industry would work to together to gain a mutual benefit.
For example, Sky Team provides comprehensive access to an extensive global network with over 1, destinations for traveler to explore.
SkyTeam partners with 19 airlines to provide travelers with a more flexible, convenient and beneficial travelling experience SkyTeam.
On the other hand, an organization like SkyTeam also benefits as travelers utilize their services to book travel reservations. Recommendation Spirit Airlines is currently has the lowest per seat operating cost of any other domestic airline company; however they are still confronted with strong competition in the industry Spirit Airlines Annual Report, Therefore, additional strategy enhancements are needed to grow the company.
After careful consideration of all strategies and value disciplines, it is recommended that Spirit Airlines utilizes the customer intimacy strategy to build brand and customer loyalty.Clincher sentences for essays on global warming love story college essay makar sankranti essay in kannada language sites correlation analysis research paper csula library thesis dissertations adrienne rich essays on the great voice personal essays lyrics elegy ode song essay speech messenger markus zusak essay le verbe essayer en anglais seulement.
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