Porter's Generic Strategy
Porter's Generic Strategies relate to the strategies that different airline companies follow in order to be profitable; e.g., to keep their position as a low-cost, no-frills airline, or a more costly airline with plenty of comforts, or a small company with specific routes that others may not have. Porter's three generic strategies are "cost leadership," "differentiation," and "focus" (IFM).
Cost leadership relates to when a company sets out to be the lowest cost airline in the industry; in other words, the airline leading all others in low fares. However they do that, whether it is using "proprietary technology," or exclusive access to the raw materials needed to fly commercial planes, they are cost leaders when it comes to economic fares (IFM).
Differentiation is setting an airline apart from others because it offers certain "attributes" that other airlines don't offer. It may for example offer sleeping facilities for overseas flights, or meals (which are rare in the airlines now). And focus means that the generic strategy of an airline is to serve something that is exclusive or specialized in a "niche market" (IFM). There is a "cost focus" (giving an airline an advantage because its fares are 12% below the average), and there is "differentiation focus"...
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That can get them into a lot of trouble. In short, uncertainty is always going to be there in the business world. Nothing is one hundred percent certain when a person is owning and operating a business. During a time when economic uncertainty is higher than normal, there is even more uncertainty that has to be addressed. Overall, though, most uncertainty falls into levels one and two. By the time
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