, 2008).
Examining U.S. Airways it is apparent that the organization does not have superior profits to other airlines; the 10-k for 2012 showed a net profit of 4.61% to 2012, while the firm has a better profit margin compared to some other airlines, it is lower than some other airlines, including American Airlines and Southwest (Yahoo Finance, 2013). As it is not have a superior profit margin the company is not a firm with a cost advantage. Therefore, this leaves the competitive advantage of differentiation.
Examining the organization in order to identify ways in which the service is different from competitors indicates that the service levels in the firm are not a source of differentiation. In 2007 in a consumer report U.S. Airways was ranked as being the worst for the customer service that was provided, where it gained only 5/30 marks of food, 10/30 marks the comfort and 10/30 marks for service and finally the reservation system gained only 15/30 marks (Zagat, 2007). However, when examining the airline there are some strategies which may help to create differences within the firm make it attractive to consumers. The airline has created a frequent flyer program, where members of the loyalty scheme are able to gain points or miles and on all of their flights. In addition to the loyalty scheme, the airline is also a member of the "Star Alliance," an alliance of airlines which have code sharing agreements and can share sell flights on each other's airlines, with the ability for passengers to earn loyalty points alliance flights which are booked through themselves. The Star Alliance is the largest...
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