Differentiation and Cost-Leadership by Airline Companies - Coursework Example

hellip; It is a mass-based airline, therefore it must adopt a dual strategy by competing in the price segment as well as the premium segment.... In the airline industry, as in any services industry, employee development and motivation is central to the success of the business.... This paper "Michael Porter's Model of Competitive Advantage" discusses Michael Porter's model of Competitive Advantage that gives us two broad-based models of Competitiveness: Cost Leadership or Product differentiation....

he authors reviewed the available literature that investigated the differentiation and cost leadership, they referred to the work of (Porter, 1985) who claimed that differentiation and cost leadership has to be mutually exclusive as they require various kinds of investments across the value chain.... Porter's recognized generic strategy framework and suggests that companies when looking for a sustainable competitive advantage they must choose between a cost-leadership or differentiation approach, alongside a preference about the scope of the market they are seeking to compete in....

nbsp;Virgin Blue airline is one of the leading airlines that are facing stiff competition from other low-cost airlines.... The paper "Keeping the Air Flair Virgin Blue" present that to maintain competitive advantage, Virgin Blue Airlines needs to incorporate factors that would help it to meet the challenges of emerging new dynamics of global business....

As the SWA continues to offer low fares, JetBlue Bryan Purnomo MGMT 430 10/17/13 From the case it is assumed that JetBlue employs both differentiation and cost leadership strategies in order to earnmarket value.... New York: McGraw Hill companies, 2013.... However, in reality the company is employing the integration strategy and the core values of Southwest airline (SWA) were implemented by David… The SWA airlines, which utilize standardized aircrafts and plies in short routes from point to point, has garnered widespread acclaim for its low flying costs and direct connection to cities....

uestion 2The airline industry is one industry in which companies have to adapt in order to earn profits continually.... ifferentiation strategy is another key tool used by firms in the airline industry to stay competitive.... It is, consequently, sensible for the company to implement integrated cost leadership and differentiation strategy.... The company differentiation strategy is two-fold: service and pricing....

The report will focus on the A close analysis of other companies that have survive during harsh market periods will help point out possible opportunities that Ryanair mas use to escape the looming threat.... In the 21st century business environment, companies have to stay on the alert in terms of aligning their business strategy with the ever-changing business environment.... The company has branded itself as a low-cost air travel company that seeks to provide close to free airline services....

companies in this category exceptionally position themselves to meet the identified needs of their clients.... companies such as Toyota, IBM, Southwest Airlines, IKEA, McDonald's, and Wal-Mat are firms that succeeded to reconcile both strategies and enjoy a dual competitive advantage.... The paper "Cost Leadership Approach and differentiation Strategy" highlights that the two strategies, one that aims at minimizing the costs incurred in the company's production and operations process, and the other focuses on the uniqueness of its products....

In low-cost airline carriers, E-commerce is of greater importance because the airline is able to eliminate the admin.... Another major factor for the importance of E-commerce in the airline industry is that they are able to closely monitor the activities of the consumers and are able to conduct market research and collect customer data....