Introduction
Workable business strategies are necessary for efficient running of any business Company. The kind of strategy employed and implemented determines the level of progress within the Company. Strategies are usually built based on various conditions which may include; the current status of the Company, the Company’s policies and ability to focus ahead based on competitive moves and business approaches.
The company’s management should have action plan which enables them have competitive advantage over other related companies within the industry. This case study focuses on the strategies Northwest Airline Company took for the purposes of increasing the Company’s market share and stabilizing its financial base. The effects and implications of the chosen strategies are explored based on business and marketing principles (QuickMBA).
Analysis
One of the key strengths of Northwest Airlines is its ability to serve large market segmentation across the nation. Being one of the domestic airlines, this has been made possible through its merger with other commuter airlines. They provide easy connection channels for jet services within the country by transporting passengers to their larger counterparts within larger cities.
Formation of inter-airline mergers led to reinforcement of technical and operational services through establishment of common operation and maintenance points. This strategy enabled the airline compete with major airlines due to their up-graded and updated services. The other strength lies within the marketing department whereby the airline has decided to integrate its flights and operations.
The connections between Airlink carriers and Northwest have been shown with clarity as online rather than interline transfers, whereby less time and lower cost on fares are involved to facilitate connections. The strategy has position the company in a better competitive advantage hence commanding good part of the consumer base (QuickMBA).
The prime role of NWA is assisting customers in obtaining updated services that are safe and profitable to the company. The operations could be reinforced through installation of modern computerized system within other Airlink carriers’ systems, since it supports necessary working system providing customers with efficient customer care services. The various customer needs could be met through installation of computerized technology system which provides customers with variety of choices on the kind of services and products they require.
This could also improve on the availability of aircraft hence helping the company reduce on operating costs and interline transfers. The new technology package, referred to as Air+ contains services such as Flight hour services which could help in providing even faster access to scheduled flights. The technology at the same time makes it easy for customers to link to the services of NWA partners and choose services which meet their personal business objectives (QuickMBA).
Management wrangles amongst individuals between NWA and other Airlink carriers within the partnership affects the necessary changes within general operation mechanisms. Different sections within the company experience effects of leadership struggles through the nature of policies implemented and the kind of leadership put in place. Various subunits within the company including the marketing sections conferred with powers of making decisions have got great influence on the prevailing nature of progress experienced.
According to strategic contingency theory the process of natural selection ensures that those who are most qualified for specific duties within the organization enjoys most influence in decision making process, hence contributing much towards successful adaptation.
Misunderstanding arises between the staff owing to their qualifications and experience. Institutionalization determines the manner in which political tactics are applied by powerful individuals who administer power within organizations; this could be identified in the way through which NWA continues pointing accusing fingers towards their counterparts in case of any problem owing superiority complex.
The procedures applied by NWA in transferring passengers and luggage between carriers seem to take longer than usual. This may be attributed to mismatch between the gates of different carriers which leads to consumption of much time while making transfers. On the other hand little has been done for the purposes of delivering excellent services online despite constant promises to consumers.
This results into lots of difficulties when it comes to connecting passengers with their luggage. The other weak point is airport services offered by Airlink partners which are not always up to date compared to NWA service standards. The new technology adopted NWA has not bee applied by its partners creating difficulties regarding procedures and information flow accorded to customers.
There is poor coordination amongst the employees of the respective partners within the merger. This could be characterized by the presence of heavy unionized workers operating under lots of restrictions, this is contrary to other commuter lines which are beefed up by inexperienced non-unionized employees earning less salaries. This has led to presence of conflicts and blame game with superiority accorded to NWA, pointing fingers at the junior commuters for most mistakes.
There is confusion within the management board concerning better ways of management; this could be attributed to poor communication channels amongst employees and also between respective airlines within the merger. Northwest Airline offers higher labor cost charges than its counterparts within the industry, this has made expansion processes difficult since the company does not have the ability to purchase other smaller airlines within the merger.
The other problem includes threats rising from maintenance and travelling costs within the industry. There is also the problem of how to develop new culture within the industry that could accommodate every performing sector from other Airlink carriers. There’s also threat from other powerful aircraft builders inventing powerful design machines driven by very expensive modernized technology (QuickMBA).
Recommendations
North West Airline should plan to utilize website for the purpose of improving on their services. They should build online services for easy guidance to customers on tips and ideas through which they could operate without travelling long distances.
This would improve on their e-ticket sales to customers which will ultimately offer customers cheaper means since they will not need to travel long distances to obtain air tickets or make hotel reservations. Low priced services would help them counter the wave of other competitors who still value high pricing of services within the market.
The low prices would help attracting most customers especially during difficult financial times. In order to improve its performance, NWA should aspire to establish good brand name recognized within the global market, this helps in maintaining stronger growth required owing to strong market identity amongst clients. Creation of strong brand name should be utilized through the low fares charged by the company.
Employees within other Airlink do not naturally enjoy work and this call for close supervision for perfect work to be done. Therefore, managers at various capacities should develop process breakdown that entails different tasks performed.
Various employees should be equipped through appropriate training methods and equipments that enable them to perform their duties effectively, this initiative should be taken by the corporate company for the purposes of uplifting working standards of other employees from other small carriers.
Payment should be made based on the level of performance and time taken to complete a task. This could be used as means of motivating workers towards maximization of on their potential leading to high productivity at lower costs (QuickMBA).
The company should consider resorting to downsizing whereby bureaucracy should be centralized and at the same time most of the responsibilities accorded to employees reduced. The strategy focuses on installing enlightened leadership while keeping the company at its competitive level. Such a move has great impact on the human resource management since it helps in reducing pressure experienced on costs and margins.
The aviation industry is one of the industries with extremely high start-up costs which guarantees low rate of new entrants. NWA Company should at the same time explicitly utilize their technological know-how and the experiences of staff members. The company has basically based their sales on stable brand name based on viable technology which has made it difficult for the new entrants to penetrate the industry.
In order to avoid wrangles amongst employees, NWA and associate airlines should focus on training and motivating staff workers for the purposes of working smarter. This requires overhaul of the current management system replacing it with new and knowledgeable staff. The process of installing computer terminal within the manager’s office was aimed at improving on the punctuality level of the flights.
The company should at the same time aspire to purchase modern equipments preferred by the consumers. In order to subsidize on the company’s profits, NWA should consider adopting new service concepts including operation of related services such as business hotels and destination services. This could make work easier for the passengers since they could make reservations and organize for other services from a central place through phone calls.
Open, clear and direct communication concerning individual performances within the Company is necessary. This is since it ensures proper adjustments on the process system enhancing service delivery.
The manner through which various forms of failures are managed could be achieved through belief on the success of all the departments within NWA and other Airlink carriers. Other non-project events should be well planned since they have great impact on the various management schedules. These events may include meetings and vacations.
Conclusion
Consumers demand for top service aircrafts which are convenient and professionally managed, this ensures comfort and safety to passengers. The focus should be towards seat designs, availability of luggage area and other sanitary requirements and also the presence of entertainment system. There is also the need to include pressurized cabin which makes the plane all weather, besides all these the overall design should look attractive to the consumers.
The costs involved when switching to other airline services should be considered since this is what determines willful movements of the consumers. The movements are as a result of differences in cost, quality and services provided making the power of buyers to be strong within the aviation industry. Difficulties could only be realized when differentiation is done within the computer operating systems.
Works Cited
QuickMBA. Global Strategic Management. Quick MBA 2010 <http://www.quickmba.com/> 19th April, 2011