Low Cost
Differentiation
Preemptive
Strengths
Service (Porter's value chain):
Best low-fare carrier
(a) High capacity usage (few unfilled seats), and is, therefore, one of the most profitable airlines, while many other airlines are unprofitable. (b) It can maintain focus on cutting frills.
Best low-fare carrier by standardization of fleet
(a) Few unfilled seats. SWA has only one basic type of aircraft. This reduces training times (b) it can continue this direction.
Price and great staff relationship
(a) Employees work very well as a team (b) Employees are encouraged to have and show their sense of humor. This should continue though within bounds
Flexible as well as unionized.
Step 4: (a) Maintains very good relationships with its unions (b) may need to set conditions with its flexibility
Weaknesses
Operations (Porter's value chain):
Mainly operates its own booking service
Step 4: (a) Booking flights is not available except directly through Southwest Airlines (b) Can work on devising...
Low Cost Differentiation Preemptive Strength Brand identity Differentiate from other low cost providers to increase volume Brand identity commands a premium price, increasing margin Brand identity becomes identifiable with a specific niche Build brand identity quickly to reduce the threat of new entrants Weakness Lack of diversification Diversify into many products to promote volume sales Brand extensions Diversification is not part of this strategy. Diversification is key to opening new market opportunities. Opportunity Geographic expansion Increase volume Increase volume Increase volume Increase opportunities Threat High substitutability Inherent in the strategy -- low cost
Strategic Choices - SWOT "Competitive advantage" is approached with the seriousness of a science involving carefully chosen strategies for cost advantage and/or differentiation advantage. Achieving one or both of those advantages through the use of one or more of four strategic business methods ideally gives a company a significant competitive edge over its competitors. The Coca-Cola Company apparently uses three of these strategies to achieve a premiere position in the global
Strategic Choices Please attached documents create a research paper accordance guidance provided. Low cost Differentiation Preemptive Strengths: Outbound logistics The company should improve their distribution method to make it more cost effective thus allowing them to cut distribution costs and these savings can be passed on to the consumers. As posited by Alagse (2012) , the best strategy for Kraft foods would be to become the lowest cost supplier of their products rather than the lowest cost
KO Advantages Coca-Cola pursues a differentiation strategy, and has built its company around the pursuit of this strategy. The strengths that the company has -- R&D, marketing, and heavy advertising -- all directly support the differentiation strategy. Coca-Cola uses its strategy to foster sources of sustainable competitive advantage, although the strongest of these is the company's brand. All told, Coke has an excellent strategy that does not result in many missed
Kraft Foods' Competitive Strategy Kraft Foods is a one of North America's largest packaged food companies. To reach its current competitive position the organization is changed to great deal of the last decade, with increased focus on the core products, and the sale or spin-off of the non-core divisions, for example the sale of the frozen pizza division 2010 to Nestle, and in 2012 the demerger of Mondel-z International (Kraft
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