Improving Our Airlines
by Santiago Stoetzel on 16/04/09 at 4:53 am
This focuses on airlines excluding Southwest because the rest of the industry is struggling for an ever-ending fight for survival.
The airline industry is infamous for its strong competitive forces that influence the industry. There are numerable rivals who engage in cutthroat competition, therefore driving profit margins low and creating strong consumer position. The industry has only a handful of companies holding substantive position such as Southwest. Southwest still an epitome of airlines, its strategy has been centered on point-to-point flights while integrating time sensitive processes that target a particular market of frequent travelers. From Heskett’s case of Southwest Airlines, it is conclusive that even this superior airline has reached its potential. This article focuses on airlines excluding Southwest because the rest of the industry is struggling for an ever-ending fight for survival.
These muster of airlines are competing on price while balancing out cost through sacrificing traveling amenities. The case analysis reveals much of the airlines are stuck in the middle of the competition. They don’t have enough room to breathe and thus they hold the air of innovation, expansion and niche-based differentiation. To initiate an escape out of these ‘prisons,’ airlines should create a blueprint strategy by taking into account some of the unique factors that have remain undermined in the process. Max Horkheimer of the Frankfurt School of social science in his 1937 essay Traditional and Critical Theory proposes the ‘Critical Theory.’ This theory is oriented towards critiquing and changing society as a whole, in contrast to traditional theory oriented only to understanding or explaining it. I believe in bringing change to the company environment by giving room for authority to individuals who will deliver unique results by their own account and breaking through the procedural conformance that is synonymous in their competitors. For example; a baggage handler can give a better account of how luggage comes in all different shapes and sizes. If I were a baggage handler, I(my uniqueness) would propose that Airlines can lower down cost through manufacturing one-size luggage that not only save space in the storage compartment but also host many advantages to the Airline. This notion is similar to commercial transportation trucks which have standards such as pallets. Standardization will adhere to a better efficiency and less effort from workers while offering customers to bring in more luggages. One-size luggage would open a market for the airlines and a little gasp of air. Although I propose this theory through a mindset of openness, if I wanted as a baggage handler in a company that wants my time only, I would keep doing the things as they were being done and clock-out at the end of the day. Referring back to the critical theory, airlines should imbed an emancipating work environment and encourage workers to recognize opportunities.
In conclusion, while physical (by physical I mean its industry) growth of the company may have limitations; there is unconditional potential within the firm to create its own uniqueness. Just like humans aren’t alike, similarly business behavior should reflect the nature of humans. Where us, humans (single entity) have evolved into a higher organism that adapts to its surrounding environment.
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