Question

Southwest and Delta both compete in the airline industry, but they follow different business strategies. Delta’s transportation infrastructure is based upon a high-value hub-and-spoke system and offers upscale services to high mileage flyers. Southwest Airlines uses a point-to-point basic system for nationwide air transport. What generic business strategy is Southwest using?

Answer 1

Broad Cost Leadership

Step-by-step explanation:

There are 4 generic business strategies in M. Porter's Model:

- Cost leadership ( Competitive advantage: Cost / Broad markets)

- Cost Focus ( Competitive advantage: Cost / Narrow markets)

- Diferentiation Leadership ( Competitive advantage: Differentiation / Broad markets).

. Differentiation focus: ( Competitive advantage: Differentiation / Narrow markets)

In the case of cost leadership is a set of actions designed to have lower cost in the market based on efficiency

In this case,the market is the airline industry where Southwest is compiting but its strategy is to have a basic quality product based in its cost efficient proposal.