Discussion 1 Week 6 Corporate-level Strategies - Assignment Example

Corporate Level Strategies al Affiliation Corporate Level Strategies From the e-Activity, analyze the essential manner in which the new Southwest-AirTran merger and resulting low-cost structure strategy could maximize both companies long-term profitability. Support your response with at least two (2) examples that illustrate the manner in which each company would avoid risks associated with becoming too dependent upon its corporate partner.After watching the video, the new Southwest-AirTran merger and resulting low-cost structure strategy could maximize both companies long-term profitability through attracting more customers and thereby increase financial profits and market share in the airlines industry (Soutwestern-Cengage).

The merger could increase tendencies for dependencies between the corporate partners. As such, two examples which would illustrate the manner in which each company would avoid risks of dependency are as follows: (1) one company could replicate a successfully implemented business model in new market segments within the industry (Hill and Jones); and (2) the corporate partner could differentiate its products (or services) by focusing on core competencies which appeal to their clientele. For instance, offering exemplary customer service through acknowledging loyal clients by name recognition or provision of perks and freebies.2. From e-Activity, determine the fundamental drawbacks associated with horizontal integration.

Suggest another corporate-level strategy that could redefine the Southwest business model and thus allow the company to increase its competitive advantage within a changing industry environment. Provide a rationale to support your response.The fundamental drawbacks associated with horizontal integration include being exposed to coming into conflict with the Federal Trade Commission (FTC) for potential violations of anti-trust laws which undermine fair competition. In addition, customers’ interests and purchasing power could also be jeopardized if major companies within the industry engage in horizontal integration and control or dictate market prices.

As such, another corporate-level strategy that could redefine the Southwest business model and allow the company to increase its competitive advantage within the changing airlines industry is the application of vertical integration. Southwest could look into improving scheduling (queuing of airline routes to facilitate speed in the number and volume of flights). The strategy would assist in minimizing costs, as well as improving customer satisfaction through speed within which services are offered with reliability and high quality of customer care.

ReferencesHill, C.W.L. and G.R. Jones. Strategic Management: An Integrated Approach. South-Western, Cengage Learning, 2012.Soutwestern-Cengage. "THE POWER OF A MERGER: SOUTHWEST ." 2013. cengage.com. 8 February 2015 .