The Cost Of The Airline Industry Essays

1199 Words Aug 13th, 2016 null Page
The airline industry is an industry that usually gets a lot of complaints for having high prices and bad customer service. Usually in this industry, companies have to charge high prices in order to realize a profit. However, a model airline company would be one set up and run like Southwest Airlines which has been able to stand out by being a cost leader in the industry. According to Hill, Jones, and Schilling (2014), a cost leadership strategy usually is sought when a company has a relatively large market share, and the company has been able to lower its costs because of economies of scale. An effective strategic reward system that can be used at various levels within the lost cost leader airline is to promote great customer service and as a benefit to employees, and for their service they will reap great rewards. A company operated like Southwest will make the effort to offer its customers low price travel tickets that are made possible by operating in a more efficient manner than traditional airlines. The company would have to keep the amount of time airplanes spend on the tarmac low by keeping them in route to different destinations. In addition, the company would offer few extra thrills to its customers, but the company would offer the best service possible throughout the entire organization for all of its guests and employees. This strategy keeps profits coming in as the company is able to meet and exceed customer service needs. A strategic reward for a company in the…

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