Last week we defined strategy as a combination of organizational activities that

Question

Last week we defined strategy as a combination of organizational activities that differentiate a firm from its competition by adding value by best meeting the needs and preferences of its customers.  Many firms have been able to successfully differentiate themselves by tapping into the needs of a particular customer segment better than the rest of their competition.  Can you think of an example(s)?  If not, perform an Internet search for examples of firms that have achieved competitive advantage by tailoring their products and/or services to a particular market segment and/or target market.  As usual, integrate textbook into your discussion to strike a nice balance between the number of key concepts covered and the depth of concept coverage…

Explanation / Answer

We can take the example of Southwest Airlines in order to determine the impact of the process of strategy and management and how it affects a particular market segment. Southwest airlines are essentially one of the most successful airlines right now. They have a distinct advantage over the competition when it comes to market acceptance and popularity. The reason for this is in their approach which basically allowed them to tap into the market of cheaper flights and excellent customer experience. This is where their niché lies. In the most basic sense, southwest airlines realized that while customers enjoyed the premium experience, the market comprised of the majority favored cheaper flights prices and essential services more than premium luxury and therefore, recognizing the need for their services to cater to the needs of re customers better. They changed their management policies and therefore created a better standing for themselves in the market as a result.

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