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Southwest and Delta both compete in the airline industry, but they follow different business strategies. Delta’s transportation infrastructure is based upon a high-value hub-and-spoke system and offers upscale services to high mileage flyers. Southwest Airlines uses a point-to-point basic system for nationwide air transport. What generic business strategy is Southwest using?

Answer :

msillitti

Answer:

Broad Cost Leadership

Explanation:

There are 4 generic business strategies in M. Porter's Model:

- Cost leadership ( Competitive advantage: Cost / Broad markets)

- Cost  Focus ( Competitive advantage: Cost / Narrow markets)

- Diferentiation Leadership ( Competitive advantage: Differentiation / Broad markets).

. Differentiation focus: ( Competitive advantage: Differentiation / Narrow markets)

In the case of cost leadership is a set of actions designed to have lower cost in the market based on efficiency

In this case,the market is  the airline industry  where Southwest is compiting but its strategy is to have a basic quality product based in its cost efficient proposal.

Answer:

The correct answer is Cost Leadership .

Explanation:

The cost leadership strategy means that SouthWest has implemented a series of measures in order to offer its service at a much lower price than the competition, which means getting rid of certain "comforts" of current aviation to incentivize the purchase of tickets offering quality service. This strategy establishes a series of basic criteria that are offered to the client and, in case of requiring something additional, it is offered to him so that he can pay for those "Privileges". For its part, Delta offers its service to a market that seeks comfort, good service and speed on the journey.

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