Southwest Airlines uses an overall cost leadership strategy. This could fail if it
A)cannot maintain parity on differentiation dimensions requested by customers.
B)maintains parity with competitors on low cost.
C)exceeds customer expectations.
D)increases its sales prices while maintaining competitor parity.

Question

Quizplus · Accepted Answer

To generate above-average performance, a firm following an overall cost leadership position must attain competitive parity on the basis of differentiation relative to competitors. The no-frills product strategy employed by Southwest Airlines may fail if it is unable to attain parity on important dimensions of differentiation such as quick responses to customer requests for services or design changes.

Southwest Airlines Uses an Overall Cost Leadership Strategy