Alaska Airline Case Study

Every successful organization has past historical advances that have enabled it to succeed right from its inception. Thus, traditional approaches, which are coupled with new strategies, are essential for the success of every business institution. The foundation of success cannot be forgotten; thus, it needs to be kept to act as a guide to the advancement on the evolving market. The traditional approaches of every organization have a rich information base that can shape the company whenever there are sudden changes on the local and international markets. The paper discusses the operational procedures of the Alaska Airlines company, its advancement on both the local and international market as well as the factors that have kept the business in persistent growth.

The traditional methods of delivering exceptional customer service should not be abandoned since they are the factors that maintain customer loyalty. The success of Alaska Airlines is linked to the trust of the customers that they serve. Therefore, changing the traditional ways of operation would interfere with customers’ schedules and undermine their trust. It would lead them to finding alternative suppliers of services. By keeping the traditional ways of serving customers as well as introducing new methods of services, the company will be able to attract new clients and keep the existing ones. As a result, there will be a culture of competitiveness on both the local and international markets. Improving customer service while retaining old traditions will allow keeping the customers who have been loyal to the company. Thus, if the two factors are combined, there will be persistent growth and success of the company.

The acquisition of new companies or new business partners comes with the additional experience to the business. By acquiring the Virgin America, Alaska Airlines should use their ideas to promote their business (Heiss, Chen, Lu, & Rhoades, 2016). They should consider factors that have made the acquired company successful. For instance, they can apply the techniques of customers service to entice Virgin America’s customers to divert their loyalty towards Alaska Airlines. Thus, these ideas will enable the company to attract additional customers, which will enhance profit maximization, thereby making the company remain competitive on the evolving market. Alaska Airlines should maintain strong ties with Virgin America’s partners; the idea will increase the exploration of market niche, which will facilitate marketing strategies and acquisition of different markets within the United States and around the world. Moreover, Alaska Airlines can hire skillful workers and other employees, such as pilots and cabin crews, who have good records of accomplishment in their area of operation. This will improve customer service, thereby attracting more clients who will ensure an increase in profits for the company. These workers may also relocate with brilliant ideas that will enable sustainable growth into the future of Alaska Airlines’ business.

Based on the current financial position, the company needs to think about increasing profit margins; there is a need to expand the asset portfolio, which will improve the delivery of services offered by the airline. Alaska Airlines competes for clients, which is the essential part of business operation in any industry. The expansion and improvement of the assets is the factor that will increase the profits for the business. More customers would mean more travels and extensions of the destinations, and therefore, the company needs to entice its clients by all means. The income as well as the assets of the company has been on the steady increase, and this means that more effort is needed to facilitate the trend. Therefore, inventing new ways of operation characterized by the proper forecasting is required to propel the business forward amidst the competition on the market that should also be monitored to ensure that the company does not lose its relevance in the airline industry.

Further, Alaska Airlines should try to enhance it operation in the East Coast. The expansion in the operation will enable the acquisition of more market niches, which will improve their reputation and service delivery. Every business needs a large number of customers and a wider market to facilitate their business activity. With a large customer base, the price for transportation might drop but at the same time, profit margins may go up if the market is large. The expansion of customer base is the reason why the airline should extend its operations to reach for the new markets. Increasing the network through the expansion to the East Coast will enable the acquisition of other companies that have the interest of joining the business. The market from the West Coast is already occupied, and increasing the efficiency is enough to obtain more clients. Thus, marketing here can easily be instigated easily since the company is already popular in the region.

Alaska Airlines can decide to sell more shares to the potential buyers to leverage its purchase of Virgin America. Buying more shares will increase the working capital of the business and lead to more investments into the firm’s assets. The management can also decide to increase the value of shares through hiking prices to enable the acquisition of more capital (Heiss et al., 2016). Another way of leveraging the purchase of the airline is possible through raising the number of shares owned by each shareholder. The more shares are distributed, the greater number of people will be willing to buy the additional shares.

The environmental trends that the company needs to consider include the policies put forward by local and international organizations on environmental protection. Thus, pollution caused by aircraft needs to be regulated according to the international standards. Changes in weather patterns in the regions of expected markets should also form part of the environmental issues anticipated by the management. The economic factors, which should be put into consideration, include oil prices on the international and domestic markets. There is always fluctuation in oil prices that affects the air transport activities. The trends in fuel prices should be monitored to regulate transportation activities. The prediction of the prices of crude oil has been a challenging factor on the oil market (Heiss et al., 2016). The evaluation of the oil market may lead to the purchase of oil products when the prices are low - a step that will minimize the operational costs.

Alaska Airlines should respond to the expanding Delta influence by regulating the prices to avoid the loss of customers. Decreasing the prices will keep the clients as well as attract more. They should also increase the efficiency and availability of planes to meet the clients’ demands and schedules (Heiss et al., 2016). The quality of customer services should be improved to maintain the already available customer base.

The traditional methods of delivering exceptional customer service in Alaska Airlines should not be abandoned since they are the factors that maintain customer loyalty. The acquisition of the new companies or new business partners comes with the additional experience to the business. By acquiring Virgin America, Alaska Airlines should use their ideas to promote their business. Based on the current financial position, the company needs to think more about increasing the profit margins; there is need to expand the asset portfolio, which will improve the delivery of services offered by the airline