Name: Hanfeng Wang

Section #1
Assignment title: Case Analysis #1a: Strategic Coherence Analysis Instructions -
SWA

No Baggage No
No
transfers Connection
Unexpected No meals
fees With other
Limited airlines
passenger
service
No seat Longer air
assignments Time hours

Short-haul,
Limited use point-to-point
Frequent,
of travel Routes between
reliable
departures agents Midsize cities
15-minute Standardized And secondary
Gate fleet of 737 airports
turnarounds aircraft
Quality snacks
For sale
Automatic Focus on
Ticketing Internet sales
High machines
Compensation Lean, highly
Of employees Productive Very low
Ground and Ticket prices
Gate crews Straight-forward,
Inexpensive
Loyalty system
Flexible
Union
contracts
High level High Southwest,
Of employee Aircraft High load
The low-fare
Great union Stock utilization factors
airline
relations ownership
 The south west airline is a reputed airline in USA, and it operates competitively in
the airline industry for a long time. Its purpose is to connect people to what’s
important in their lives through friendly, reliable, and low-cost air travel. Its strategy
is to provide extremely efficient operations, low-cost pricing, and innovative logistics
solutions for customers.
First-order fit
This highlights the consistency between various activities individually or separately
and the overall strategy. South west airlines to meet its overall objectives all its
activities are consistent with the strategies of low cost, effective operation and
innovative solution. They focus on cost cutting, maximum utilization of resources,
simplifying process and motivating employees to implement their strategies. All
activities of south west airline are consistent with its strategy, and this is the key point
for SWA to sustain its competitive advantage.
Second-order fit
This highlights the individual activities are complementary to or reinforcing of
another activity, which strengthens the organization’s strategic objectives. It means
one activity facilitates or supplements another activity, and this is conducive to
implement the strategy. For example, South west airlines do not provide meals during
flight, which is consistent with cutting cost. However, if customers are hungry or they
want to relax themselves by eating something, one solution must be suggested.
Quality snacks for sale is a good solution for this special situation, and it meets the
objective of innovative solutions. The activity of no meals reinforces to this activity.
These two activities are the implementation of organization’s strategy, and no meals
strengthens the activity of quality snacks for sale. Another example is limited use of
travel agents, focus on internet sales and straight-forward, inexpensive loyalty system.
Limited use of travel agents may make some trouble for customers, for they have to
find and select travel agents that is approved by south west airline. Focus on internet
sales encourages consumers purchase ticket from south west airlines directly, and it is
conducive for the customers’ loyalty system. The activity of focus on internet sales
also eliminates the negative impact of limited use of travel agents. Focus on internet
sales and limited use of travel agents are complementary of and reinforcing to each
other. These two activities increase the loyalty of consumers, which is conducive for
the straight-forward, inexpensive loyalty system. These three activities are consistent
with the organization’s strategy of cutting cost and effective operations.
Third-order fit
This refers to beyond activity reinforcement to that is more likely to optimize
activities. I think high compensation of employees can be removed, and high level of
employee stock ownership can be improved. Employee stock ownership ties the
company’s revenue with employees’ interest, which will motivate employees and
improve their sense of belonging. Removing high compensation activities and
decreasing basic wage can facilitate employees’ motivation and initiative.