Business strategy of US Airways - Case Study Example

Comments (0) Cite this document
The strength of a firm to make a profit and attain sustainability has been zeroed in to be affected by two factors: cost advantage and…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER93.7% of users find it useful
Business strategy of US Airways
Read TextPreview

Extract of sample "Business strategy of US Airways"

Business strategy of US Airways Number According to Porters theory, a firm’s relative position within the industry rests upon how it positions itself in its business environment. The strength of a firm to make a profit and attain sustainability has been zeroed in to be affected by two factors: cost advantage and differentiation. When they are applied in either a broad or a narrow spectrum, the resultant are three generic strategies, cost leadership, where a firm sets out to be the lowest cost producer in the industry, differentiation, where it seeks to be unique from other competitors and focus, where it establishes a narrow competitive scope based on cost or differentiation.
US Airways initiated a merger with American Airways which was completed in 2013. The merger is a cost leadership strategy in addition to boosting profits and strategically positioning themselves for stiff competition with other industry leaders. According to analyst (Staff, 2013), the company can benefit from $600 million cost reduction under the new deal. US Airways employed a no-frills strategy to lure cost sensitive customers. Though its West Coast flights are within the United States, it operates a full slate of European flights from its East Coast hubs.
US Airways has also employed differentiation strategies in a bid to attract a certain segment of the market. US Airways has considerably few international flights but is concentrated in Charlotte, N.C., Phoenix and Philadelphia. Unlike American Airlines, US Airways has little presence in Los Angeles with only a strong presence in outlying airports such as Ontario, Burbank and Long Beach. The merger is a strategy that will make US. Airways presence in Los Angeles significantly felt hence a boost on its performance. Under the new merger, the Group president Scott Kirby indicates that they anticipate targeting corporate customers as they can spend thrice as much as leisure clients, qualifying them as a lucrative segment on the airline market (Staff, 2013).
Staff, P. B. (2013). American Air Groups new strategy: no layoffs, more business travelers post merger. Phoenix Business Journal . Read More
Cite this document
  • APA
  • MLA
(“Business strategy of US Airways Case Study Example | Topics and Well Written Essays - 250 words”, n.d.)
Business strategy of US Airways Case Study Example | Topics and Well Written Essays - 250 words. Retrieved from
(Business Strategy of US Airways Case Study Example | Topics and Well Written Essays - 250 Words)
Business Strategy of US Airways Case Study Example | Topics and Well Written Essays - 250 Words.
“Business Strategy of US Airways Case Study Example | Topics and Well Written Essays - 250 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Business strategy of US Airways

Corporate Strategy Assessment: British Airways

...:// (Accessed November 12, 2012). —. n.d. "Stronger together - British Airways and Iberia." [Online]. Available at: (Accessed November 14, 2012). Callari, R. 2012. "British Airways Uses Social Media & UK Addresses For Olympics' #HomeAdvantage." Inventor Spot. [Online]. Available at: ild_homeadva (Accessed November 15, 2012). Gilbert, X., and P. Strebel. 1987. "Strategies to Outpace the Competition." Journal of...
10 Pages(2500 words)Essay

US Airways Group - Going Global

...for the expansion. US Airways has to let the European customers know that the company has arrived and is open for business in Europe. A good starting strategy is to offer very low introductory prices to increase the demand for the firm’s products. The discount should be given in a manner that the customer recognizes that the low prices are a special offer for new customers. The firm could offer discount vouchers that reduce the final price of the plane ticket. This strategy will prevent price wars from occurring. Price wars are a common threat in any oligopoly marketplace. Another marketing strategy that can be used by...
2 Pages(500 words)Essay

US Airways Group - Going Global

...?US Airways operates in an industry that is tailored made to transfer the service the firm offers from the domestic to the global market. The companyoffers air travel services to different destinations in the United States. The company has decided to penetrate other marketplaces. In order to transfer the operation to the global marketplace the company simply has to create new routes in a foreign market. The EU has been identified as the perfect expansion marketplace for the company to enter. A characteristic that can help US Airways obtain customers in a global market is by offering top quality customer service. In the airline industry price is no longer the top...
1 Pages(250 words)Essay

US Airways Group - Sociocultural

...?Examining the different cultural aspects of various cultural clusters also creates a different understanding of how a business should work. When looking at US Airways Group, it can be seen that there are several sociocultural aspects which relate to business. This is specifically defined when looking at the cultural clusters of the Far Eastern Countries, with an emphasis on China, and Germanic countries, with a focus on Germany (Ajami, Cool, Goddard, 2006). Both regions have different attitudes, beliefs and expectations that are based on flight and business principles and which create a different relationship to the business through the...
3 Pages(750 words)Essay

Qatar Airways Marketing Strategy

... Qatar Airways Marketing Strategy and Tourism LITERATURE REVIEW To date, there are two significant studies made about marketing for the airlines industry—“The Business and Marketing Strategies of Asian Airlines” by Fok, Wai-keung of the University of Honkong in 1988; and “A Linguistic Analysis of Marketing Strategies by Airlines on the Internet” in 1998 by Tanja Dähnhardt of Justus-Liebig-Universität Gießen Deutschland. The first study by Fok makes a comparison of Singapore Airlines and Cathay Pacific of Hongkong and discusses the marketing approaches that contributed to the success of these two leading airlines in Asia. The second research by Dahnhardt focuses on a linguistic analysis of marketing strategies by airlines... of...
11 Pages(2750 words)Case Study

Business Policy - British Airways

...on the major Airline like British Airways. (Wit, 2004, page 684). Resource Management: For British Airways the business model is built targeting larger segment of customers, reaching out to more destinations along with the additional customer relationship programs they offer. (“Flight for Survival: A New Business Model for the Airline Industry”, 2003). Apart from all these hub-and-spoke network has to be backed by a highly sophisticated information system and developed infrastructure to compliment the complexity of their operations. According a study the low cost carriers reduce their prices by paying lower salaries to employees, using cheaper pilots...
28 Pages(7000 words)Case Study

US Airways

...issues could perhaps act as a long term strategy on solving the fuel pricing uncertainties. Secondly, although operating under competition is good for the delivery of services and locking out certain threats, it is logical that the US Airways considers entering into profitable mergers. In the heat of difficult economic times, it is easy for such an industry player to jointly weather off unfavorable economic environment with a like-minded firm. Business success has been reported by mergers or amalgamations, which offer a powerful bargaining power in the market. Considering such decisions would assist the management at the US Airways an...
12 Pages(3000 words)Research Paper

Business Eithics (British Airways)

...Stakeholder Analysis: British Airways Introduction This paper focuses on the stakeholders of the British Airline giant, British Airways. The aim of the paper is to describe the network of stakeholders that are connected to British Airways. This will be followed by an analysis of two different stakeholder groups and a critique of their ethical concerns and connections to British Airways. The paper will provide an assessment of how British Airways has successfully dealt with these stakeholders. Stakeholders & Business Entities Directors and managers of entities have the fiduciary duty of dealing in good faith with the owners of the business who appoint them and give them the legal power to use the resources of the entity (Carroll... of...
8 Pages(2000 words)Essay

Business Environment: British Airways to provide a safe and quick journey to the customers. The main objective of both the airline companies is to provide a memorable flying experience. British airways strive to do the same by giving the customers the best of all and treating them like a royal personality. easyJet operates in an exactly opposite way reducing the costs of the flight travels as much as possible making the flying experience accessible to even the poorest person in the country. B. Identify the stakeholders of the chosen company and describe the extent to which it meets the objectives of its different stakeholders and the strategies used. The stakeholders are the connecting groups who are linked and...
10 Pages(2500 words)Essay

Business Strategy British airways

...Business Strategy Pierre Messier A4080128 British Airways and its Strategy British Airways is the national airline of Great Britain. It was established in 1974 as a result of a merger of 4 British airlines. British Airways were privatized in 1987. BA expanded as a result of acquiring British Caledonian in 1987, Dan Air in 1992, and British Midland International in 2012. In 2011 British Airways merged with Iberia, creating the International Airlines Group (IAG), the world’s 3rd largest airline group in terms of annual revenue and the 2nd largest in Europe.   Task 1: (LO 1) 1.1. Strategic planning, vision, mission,...
17 Pages(4250 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Case Study on topic Business strategy of US Airways for FREE!

Contact Us