Southwest Airlines focuses on low prices, transparency and customer service. The company also appeals to many...
Southwest Airlines focuses on low prices, transparency and customer service. The company also appeals to many different customers. What strategy is the company employing?
Select one:
A. Focused Differentiation Strategy
B. Focused Low-Cost Strategy
C. Marginal-Cost Strategy
D. Broad Low-Cost Strategy
E. Broad Differentiation Strategy
Homework Answers
Answer = Broad Differentiation Strategy
As explained in question, the differentiating factors - low prices, transparency and customer service are multiple differentiating factors that appeal to a large customer base with different priorities. Southwest is just not focused on cost and hence option B,C and D are ruled out.
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