Spirit Airlines should do a global expansion plan with bases of operations, not limited to, passenger flight operations, maintenance operations, ramp operations, airport facilities operation, in international countries. Global expansion will and should include hiring and firing of staff, training and development of staff, and financial reporting for existing currencies.
Operations in international and/or foreign countries will create significant operational challenges. Differences in governing laws and regulations for the airlines industry, business, and employee relations will become challenging. Interpretation and intent for various laws can and will provide ambiguity that must be dealt with. Research shows that various international airlines continue to be plagued by high costs and poor service (Ramamurti & Sarathy, 2007).
This is an opportunity for a United States based airlines like Spirit to bring in a proven product that is cost effective and complimented with good service to a globalized economy that suffers from lack of product.
Globalization, in its most literal definition, is the process of making, transforming or expanding a product or service into a global one. This process is a combination of economic, technological, socio-cultural, and political forces (Button, 2008).
Tackling these hurdles in globalization can be accomplished though the following:
• Spirit must forecast cost. The cost of globalization can be subdivided into legal fees and
In order for Spirit to perform successfully in the industry, they would need to construct innovative ways to keep prices low but offer all the amenities which their competitors have. When flying, customers like to relax and will definitely compare which airline has the best amenities. Also, Spirit will need to continue to expand to other
Spirit Airlines has been the self-proclaimed ultra-low budget airline, and thus its revenue flow is roughly split between passenger and non-ticket income. (Spirit Airlines Inc., 2016) With the airlines growing fleet they have also expanded the Available Seat Miles (ASMs) by 20% from the past year. The airline has been able to maintain high margins through this unique business style, for the first quarter 2016 Spirit Airlines posted a 21.3% pre-tax profit margin. However this has not stopped Spirit’s stock prices from dropping from an all-time high of $84 to the current $42 in the past two years. (Yahoo Finance, 2016) Spirit plans to continue to grow its fleet and provide service to an expanding network of airports utilizing its signature
In many respects, by its very character the air transport industry has always been a global business. The progress of larger more efficient aircraft has contemplated that air travel is increasingly commonplace. More people have the chance to travel to more places than ever before. As an outcome of this, the traveling public's anticipation has been lifted. Thus the industry is becoming increasingly globalized and phrases such as seamless service and frequent flyer program have turn weapons in the fight to win passengers. American carriers, immediately shattered by the attacks on the World Trade Center and the Pentagon, are not the only ones affected. The dust was only just starting to settle on the wreckage when the knock-on effects were intimidating intolerable stress for other carriers already suffering from declining passenger numbers and rising fuel and other costs. Setting up direct marketing program helps Southwest airlines to take a more connected, and focused outlook. The customer feels in demand and this helps in building goodwill. There are numerous issues one has to deal with while founding something new and this was kept in mind Southwest airline’s investment decisions, the selling structure, policies, automation of the system, etc. To be ready to deal with them, a few new programs must be set up. For instance, customer-ranking action must be grown. The steps mentioned earlier must be carefully thought about and
Southwest Airline’s successful strategy consists of three complementary qualities which are focus, divergence and compelling tagline. This short-haul airline believes that by focusing on friendly service, speed and frequent point-to-point departures, its low pricing is able to compete against car transportation. While other competitors try to delight customers by investing in meals, airport lounges and seating selections, Southwest chooses to eliminate or reduces investments in these industry’s competitive factors. As a result, Southwest’s low prices are unbeatable making them the preferred airline in the industry. With a divergence element in Southwest’s strategy, it is able to innovate and stand apart
It’s one of the main focuses of Spirit Airlines as an organization and everything they do is geared towards achieving that goal. The resources used in order to keep Spirit as a low cost airline are limiting costs for amenities and increasing quality. Safety for both customers and employees is another great concern that Spirit takes very seriously. Management has a large impact by being sure safety standards and qualifications are being kept current. Finally, the organizing process used in continuing with the low prices and customer satisfaction is keeping their fleet healthy by undergoing scheduled maintenance as well as in-house maintenance as
The definition of globalization, the moving of people, their ideologies, and goods spread throughout the world. Globalization is spreading quickly and more people are being exposed to different cultures and social classes. The American-born poor is not adjusting to the globalization in the United States, the Mark Stroman’s in the United States are not accepting of the globalization and want everything to go back to only white America.
Globalization is the process by which businesses or countries develop an international influence. It is a result of the interweaving of markets, technology, and information around the globe. As a result globalization has resulted in a more interdependent global economy.
Globalization is the process in which people, ideas, and goods spread throughout the world, spurring more interaction and integration between world cultures,
As I reside in Dallas, Texas, I chose to examine the major initiative planned by Southwest airlines over the next five years and their legal impact. Southwest is a low cost carrier or budget airline that adopts the low cost strategies in all of business, such as the opening airlines, choice of secondary airport, ways of selling tickets and on-board service. Any type of airplane, any simple fare different scheme, direct sales of tickets, no reserved seating, without many national or international passengers services, use of any airport and short-out flights very quickly time ,simple routes with time -to-time transportation, low employment cost with multiple roles and etc. Such a strategy will reduce the price to a lower-level and then the cost they have saved will benefit the passenger, and it will help them. Lowest carrier had change the customary idea of air travelling, is a high level of expenditure into a speed and economic air travelling. The concept original in the United States, follow by Europe and consequently to Asia.
Globalization is the process of the world becoming better communicated, which promotes the adoption of common cultural aspects, the international exchange of goods and services, and foreign investments, thus creating a global market and encouraging division of labor.
Globalization is a process in which barriers (physical, political, economic, cultural) separating different regions of the world are reduced or removed (removal of barriers is called liberalization), thereby stimulating exchanges in goods, services, money, and people. As these exchanges grow, nations and the businesses involved, become increasingly integrated and interdependent, promoting mutual reliance between countries. ⁵
According to IBISWorld Global, worldwide travel and passenger numbers are expected to grow due to changes in the demographic and economic environments, such as declining unemployment rates and rising income levels. Therefore, airline companies such as Southwest Airlines differentiate their brands from competitors by proactively creating value for customers. Since 2001, the airline industry has experienced greater costs due to the failing economy, volatile prices for fuel, and increased global competition. In order to combat these environmental factors, Southwest Airlines keeps airfare costs lower than those of competitors, focuses on fuel-efficient technology, and expands its services into other countries.
Another definition of globalization is suggested by Morrison (2011, p.43), that globalisation is a process by which people, products, information, money and companies can move around the world as decision-makers
Even though the airline industry is a one star industry, Southwest has found multiple ways to become very successful and stand out as an industry leader. Southwest has many opportunities to improve their business. Its greatest opportunity is to continue to develop its low cost business plan. It must continue to push for maintaining low-cost flying and brand association that has served Southwest very well in recent years. Southwest has always
This issue was born after of 9/11 and facing through the global financial crisis, it has faced some bad days in the airline industry. Its success today, it stands as a example to the power of great teamwork, passion, Innovation and well-executed ideas.