B) The Strategy with Environment
One of the best strategies that US Airways has is to provide a safe, reliable and convenient service. According to US Airways 10k report, US Airways offers 3100 flights daily to more than 200 communities in the United States, Canada, Mexico, Europe, the Middle East, the Caribbean and Central and South America.
US Airways has dominated the Customer Service Key Survival Factor (KSF) by achieving six first place baggage handling, first place on time-performance by also offering a program that allows passengers to earn mileage for each paid flight.
There is a connection between the strategies that US Airways use and the key survival factor.
According to the US Airways 10K report, one of the largest costs for the business is the high cost of fuel. The cost of a gallon of fuel increased by 1.28 billion from 2010 to 2011. This big increase can affect the ability to maintain or increase fares and the passenger demand. We cannot control the environment that we live in political, economical, government regulations, natural disaster, etc. all this changes can affect the fuel price. US Airways will have to come up with an strategy to control this problem. According to Susan J. Aluise “Hedging is an important element of fuel cost management for most airlines. Fuel hedging enables airlines to enter into a contract to pay a set price for their future fuel purchases. The strategy can help minimize the impact of volatile fuel prices on their operating costs. Domestic airlines have different hedging strategies available to them, including the use of both over-the-counter and exchange-traded derivatives.”(Susan J. Aluise, 2011)
US Airways provides service at 133 airports while the US Airways Express network served 156 airports including 78 airports by the mainline. The business is able to grow this big by having the right capabilities.
The business seems to be growing really fastcreating strong functional, operational and innovational capabilities such as