Foreign Market Entry and Diversification

Foreign Market Entry and Diversification

Introduction

Southwest Airlines is the growing airline company in the United States of America. It is claimed to be the provider of services to the customers at the lowest costs. It has its airline services in 48 states and is now launching its services in Puerto Rico as well. The company aims to provide its customers with the most comfortable services at the lowest costs (Anonymous, 2004). The friendly attitude of the employees provides customers with an unforgettable experience that the customers continue to be a part of the company. When the business aims to expand globally, the top management has to exercise strategies and planning for the venture to be successful. Diversification is followed by many factors, so here customers, employees and the investors all have to work together for achieving the plan for the organization (Anonymous, 2004). Southwest Airlines, at all levels, ensures that employees are treated equally so that they are motivated to treat the customers in a better way, which makes them delighted and force them to avail the services again in the future. The following paper discusses an argument over diversification at Southwest Airlines and presents the challenges that the company might have to face when going global.

Discussion

Mission of Southwest Airlines

Southwest Airlines aims to provide the best services to the customers and satisfy their needs with better hospitality procedures. Also, employees are provided with a stable workplace where they receive equal treatment and the employees are given the respect that they deserve.

Vision of the company

The company has the goals of becoming the most profitable company in the short term and the long term. It aims to expand its services globally at keeping its low costs consistent. For this purpose, the company sets the standards and aligns them with its strategies to achieve its final objectives.

Southwest Airlines and Diversification Strategy

The airline served three cities initially. It has progressed and has maintained its position as America's best service providers in terms of quality, performance and price. It has become to be known as the world's lowest cost service provider with 32,000 employees. The airline has cheerful employees and this is reflected in the services that they provide (Slater & Narver, 1994). The work groups and the departments help each other and keep the workplace full of spirit. Employees are dedicated towards making the company maintain its position as the ...