The examples of Ikea and Southwest Airlines demonstrate:
A)The power of brand as a factor of success
B)The quality of the top management of these firms
C)The power of advertising
D)How a cost-leadership strategy can be combined with distinctive product differentiation

Question

Quizplus · Accepted Answer

Both Ikea and Southwest Airlines have implemented a cost-leadership strategy while also incorporating distinctive product differentiation. Ikea offers affordable furniture with modern designs and easy-to-assemble packages, while Southwest Airlines operates on a low-cost model while providing efficient and friendly service. This combination of cost leadership and differentiation has been a key factor in their success. The power of their brand can be seen as a result of this strategy, but it is not the only factor contributing to their success. Top management and advertising may also play a role, but they are not the primary factors demonstrated by these examples.

The Examples of Ikea and Southwest Airlines Demonstrate