Southwest Airlines began its no frills, no meals strategy in the late 1960s as a direct assault on the major carriers of the day. What type of competitive action does this represent?
A)A strategic action because it includes a refinement of an existing strategy.
B)A tactical action because it is a refinement of an existing strategy.
C)A strategic action because it was a breakthrough innovative offer.
D)A guerilla offensive because it is fast and will surprise its rivals.

Question

Quizplus · Accepted Answer

This is a tactical action because it was a refinement of an existing strategy. Some competitive actions take the form of frontal assaults, that is, actions aimed directly at taking business from another company or capitalizing on industry weaknesses. This can be especially effective when firms use a low-cost strategy. The airline industry provides a good example of this head-on approach. When Southwest Airlines began its no-frills, no meals strategy in the late 1960s, it represented a direct assault on the major carriers of the day.

Southwest Airlines Began Its No Frills, No Meals Strategy in the Late