Reference no: EM133434548

Assignment:

The concept of 'overall cost leadership' strategy is based on creating a low-cost position compared to the other competitors in the industry. On the other hand. the strategy of differentiation consists of creating differences in the firm's product or service offering by creating something that is perceived industry-wide as unique and valued by customers. These strategies help in improving the competitive position vis-a-vis the five-forces in the industry. There are business examples of Spirit Airlines (Case 16), and Southwest Airlines (Case 17) within the recommended text book (David at al. 17* Edition). Using these cases, your group is required to address below points:

1. Start with an analysis of Porter's five forces to show how the strategic approach of these companies in the "airline industry" helps them to maintain or improve their competitive position. Include a detailed chart for the five forces and discuss it in the body of your report. (the chart is not included in word-count).

2. Discuss the advantages and disadvantages (pitfalls) of the firm pursuing overall cost leadership or differentiation. Include in your discussion if the company in question is facing any or all of the pitfalls associated with the selected strategic approach.

3. Thinking about the advantages of the particular business-level strategy; do you think the consequent advantages are sustainable? Why. or why not?

4. Discuss which strategy would be more beneficial to pursue: a focus strategy or combination strategy?

5. Discuss your recommendations for the future direction ofthese companies. for instance if they can (or should) engage in related or un-related diversification.