“Corporate-level Strategies” Please respond to the following with detailed comments and analysis (Note: please watch the longer video in the “Other Preparation Items” link in Week 7):
- From the e-Activity, analyze the essential manner in which the new Southwest-AirTran merger and resulting low-cost structure strategy could maximize both companies’ long-term profitability. Support your response with at least two (2) examples that illustrate the manner in which each company would avoid risks associated with becoming too dependent upon its corporate partner.
- From e-Activity, determine the fundamental drawbacks associated with horizontal integration.
- Suggest another corporate-level strategy that could redefine the Southwest business model and thus allow the company to increase its competitive advantage within a changing industry environment. Provide a rationale to support your response.