Your boss, Penny Dirks, has asked you to analyze the airline industry using Porter's three generic strategies.Which of the following companies are using a cost leadership strategy?
A)Southwest, Horizon, Frontier, JetBlue.
B)British Airways, Singapore Airlines, Virgin Atlantic.
C)Sky Taxi - a rent by the hour personal plane service.
D)All of these.

Question

Quizplus · Accepted Answer

Southwest, Horizon, Frontier, and JetBlue are all low-cost carriers that have adopted a cost leadership strategy. This strategy focuses on minimizing costs and offering lower prices to customers, allowing them to compete with other airlines in the industry. British Airways, Singapore Airlines, and Virgin Atlantic are known for offering higher levels of service and amenities, indicating that they are using a differentiation strategy. Sky Taxi, on the other hand, is a niche player in the industry and may be using a focus strategy, as they are catering to a specific group of customers who are willing to pay for the convenience of a personal plane service.

Your Boss, Penny Dirks, Has Asked You to Analyze the Airline