Reference no: EM132290290
Competing with low-cost carriers: Alaska Airlines
Situation
In 2018, Alaska Airlines introduced its Saver Fare, which offers customers a fare option that is about $30 less than an economy fare and that has limited amenities (i.e., no flight changes, last to board, assigned or limited seats).
Alaska is responding, it appears, to the increased competitive threat of low-cost carriers such as Spirit Airlines and is following similar moves by Delta, United, and other traditional airlines.
Do you believe Alaska's introduction of the Saver Fare was a good strategic move? More specifically, will it attract customers who might normally fly on low-cost carriers and improve Alaska's profitability?
Directions
In 600 words or fewer (excluding references, tables, or figures), respond to the question above.
Use concepts from class (e.g., six strategy domains and business model fit, strategic targeting & positioning, value-price-cost framework, efficiency frontier, resource-based view, capabilities) and your own research to create a cogent argument.
You may collaborate with your classmates and ask them to edit your paper, but the writing must be your own.
Either use endnotes or hyperlinks within the text to cite your references. If using endnotes, you may follow APA, MLA or Chicago guidelines for the references. References do not count toward your word limit.