Reference no: EM131425988
Cost leadership Differentiation: Organizations compete for a wide customer based on price
Differentiation: Value is provided to customers through unique features and characteristics of an organization’s products rather than by the lowest price.
Focused Low Cost: Organizations not only compete on price, also select a small segment of the market to provide good
Focused Differentiation: Organizations not only compete based on differentiation, but also select a small segment of the market to provide goods and services.
For Southwest to continue to have great success in its competitive advantage, customer satisfaction will continue to be a main priority. The strategy that will assist them in doing this would-be differentiation. Southwest has gained it success on being different from other airlines, by lowering cost, flying to smaller airports that other carriers had no presence in, and it’s no baggage fees. Although Southwest is a leading airline carrier the company is now considering offering more perks to its customers by becoming more innovative with newer planes and offering more inflight services. Michael Levine a professor at NYU, as well as a former executive at Continental and Northwest stated that, “Southwest still has a unique personality, but its flying more and more in formation with the Big three”. (fortune,2015) If they continue to be unique with low cost, but continue to add value and great customer service it will continue to progress as one of the top airline carriers despite its competition.
Debate: Agree or Disagree: Discuss which generic business-level strategy is best suited to keep the company you selected competitive. Offer supporting rationale for your explanation.
Behavioral economics is a descriptive theory
: Behavioral economics is a descriptive theory: it attempts to model how people actually behave. Neoclassical economics is at least partially a normative theory - it says how people should behave in order to act rationally. Do you believe that people s..
|
Expected to generate net cash flow
: The XYZ Corp. is considering the purchase of a delivery truck for $50,000.It is expected to generate net cash flow of $25,000 per year for three years after which, or at the end of year 3, will be sold for an estimated $20,000. With an MARR of 5%, ca..
|
When does rate of inflation become a problem in the economy
: When does rate of inflation become a problem in the economy? Why do policymakers need to tame inflation (deflation) to stabilize prices? Sociology question: Construct a definition in your own words for the term "doing gender." What are some specific ..
|
Price of product to maximize profit is nonlinear problem
: Setting the price of a product to maximize profit is a nonlinear problem that could be assigned to a management scientist. Demand D for a product is generally a decreasing function of price P. When the price is low demand is high but the profit is sm..
|
Cost leadership differentiation
: Cost leadership Differentiation: Organizations compete for a wide customer based on price. Differentiation: Value is provided to customers through unique features and characteristics of an organization’s products rather than by the lowest price.
|
What is the effect of the price change on the new bundle
: Assume a constant marginal rate of substitution at 6 for all possible consumption bundles (the bundle includes only goods 1 and 2). Although the price of good 1 decreased from the previous equilibrium, the ratio P1/P2 is still greater than 6 (as it w..
|
Illustrate the theoretical points you are elaborating
: Compare and contrast Marx’s and Durkheim’s understanding of (a) the division of labor, and (b) its implications for the structure of, and quality of life in, contemporary society. Use specific examples in your discussion that will help to illustrate ..
|
What happens to revenues of gas station after price change
: In your town a car wash company charges $8 per car. The car wash company rents the space from a gas station, and pays $5 for each car to the gas station. The car wash company washes 300 cars per week on average. What happens to the revenues of the ga..
|
How much space should southwest give up to offer these seats
: While I do believe that Southwest should open some of their seats to first class or possible business class, the question is how much space should Southwest give up to offer these seats?
|