Airline Business Strategy (Case Study Sample)

Airline Business Strategy
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Airline Business Strategy
In the current competitive global market, companies seek ways through which they can improve their competitive edge to remain efficient with sustainable profitability. In doing so, companies embark on embracing strategies that would ensure they meet their missions in promoting their competitive edge. According to Porter, some of the approaches employed by organizations entail cost leadership strategies, differentiation and focus strategy, which collectively he refers to them as generic strategies (Kroenke, 2013). In the airline industry, the applications of Porter’s generic strategies are crucial in fostering competitive advantage. For instance, a company may adopt differentiation to concentrate in providing certain unique services that only applies to a particular market segment. JebBlue Airways demonstrates this, as it is differentiated itself as an airline company that focuses on technology and comfort to provide high-class airline services. Although this would be beyond the reach of many consumers, the company views this as a strategy to maximize profits with the few customers choosing their services.
The U.S Airways is one of the leading airline companies in the U.S, flying within and beyond the U.S borders. In the recent times, the company has had tremendous growth owing to its strategies that seem to work well for them. Notable, the company exhibits a cost leadership strategy aimed at reducing the costs of operation in order to translate this to low costs it charges it customers. For example, in 2001, the firm laid off 11,000 workers in order to reduce its costs of operation (Besanko, 2010). This translated to the reduction in the fare it charges i...