Friday, October 4, 2019
Porter's generic strategies Case Study Example | Topics and Well Written Essays - 250 words
Porter's generic strategies - Case Study Example The cost leadership strategy has enabled the U.S airways to increase profits by reducing costs that are incurred by the airline, and also enable them to increase the market share by putting cheaper prices while still making a favorable profit on each sale they make (Kossowski, 2007). The U.S airways has made this strategy highly efficient since they have; access to the capital needed to spend in technology that bring costs down, efficient logistics and low cost requirements on labor, materials and facilities. The U.S airways has also applied the differentiation strategy, which involves making their products and services unique and more presentable than those of their competitors, hence making them more efficient in the airline market (InfoRefuge, 2012). Focus strategy used by the U.S airways entails concentrating on a market and providing it with low costs or well-specified products, which eventually builds a strong brand loyalty amongst their customers making it more attractive comp ared to their competitors. Airline competitors have been outdone successfully by the U.S airways because of the airlines use of the Porters generic strategies, which ascertain that they are more competitive and get a greater share of the
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