In both Europe and North America, established airlines are desperately cutting c

Question

In both Europe and North America, established airlines are desperately cutting costs in order to compete with the increasing number of budget airlines. However, it is highly unlikely that these airlines will ever match the cost efficiency of Southwest, Jetblue or Ryanair. What opportunities are there for established airlines to improve their competitive position through differentiation strategies? Make specific proposals for how established airlines can differentiate their customer offerings more effectively.

Explanation / Answer

improvement of competitive position of airlines The next generic strategic option is differentiation when an organisation will develop a product or products which are perceived as being different or unique from its competitors. This is more appropriate for a more price insensitive market. This may be achieved through enhanced service features, brand image, promotion, technology, distribution or other dimensions. In other words it can be achieved if there are real (by product design) or perceived (by advertising) differences between its products and those if its competitors. Within the airport industry, there appears to be some scope to pursue differentiation strategies. For example, there could be the development of a new airport in a city centre position with its

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