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During this quarter have examined two different model while Emirates Airlines uses a strategies. Southwest Airlines uses Price/Low strategic Differentiated model. Ironically, these two airlines which are at the two extremes landscape are the only airlines to be consistently profitable for the last twenty years.
You have been approached by a group interested in entering the airline business. This is an industry to get into. Just check out the airplane graveyard in Mojave. You just need a couple of airplanes and you are in business! This group essentially has unlimited funds. While they would be US based they investor group has expressed no preference for a domestic airline vs. an international airline.
You are to make a specific recommendation to this group as to the strategy they should follow. Give your reasons why think this is the best approach. You may select a Low Price/Low cost approach or a Differentiated approach or some other approach. You may recommend that they not go into the business. Whatever you choose, give your reasons.
Look at both the case studies. Look for the activities of Southwest that support their strategy. Look at Magretta. What would be your Unique Value Proposition? What tradeoffs Describe how pieces would Fit. Remember Southwest would support your recommendation? uses a point-to-point flight schedule while Emirates uses a hub-and-spoke. Why do these approaches reinforce the respective strategies of the two airlines?
Low Price/Low Cost Strategy For An Airline Business
Length: 5 pages (1381 Words)
Low Price/Low Cost Strategy for an Airline Business
Engaging in any business requires a lot of prior research so as to come up with the best managerial plan for the business. It is evident that, a poor management scheme for any business leads to failure and lack of productivity from the particular organization. One of the main aims of setting up a business is to ensure that the owner earns profit out of it. Despite some of the businesses such as the hospitality business aimed at offering services to the people, they are also required to generate profit from the business. Airline business is among the most profitable businesses in the United States. As a personal business consultant, this paper will discuss why it would be recommendable for an airline business to embrace the low price/low cost approach rather than other managerial approaches present for the airline business. The report will focus on the advantages that the low-fare airlines have over other airlines that uses other business approaches.