Monday, July 4, 2011

Chap 5. Creating Business Strategies

This chapter discussed how businesses create their strategy in order to capitalize on core competencies while looking for opportunities in the competitive environment.  Strategic positioning within the industry is important. Micheal Porter's concept generic strategies result in four (4) strategic positions; low-cost leadership, differentiation, focused cost leadership, and focused differentiation.

Out of Micheal Porter's concepts, Delta Airlines concentrates it's generic strategy on Differentiation.  The brand legacy is unique and is recognized throughout the industry.  In the attempts of competing with low-cost carriers, Delta created Song airlines a low-cost carrier.  Evan though Delta was not a low-cost leader, the implementation of this strategy failed. They were trying to be something they were not.

What sets Delta apart from others; its customer service throughout the system, premium in-flight amenities, and its frequent flyer rewards program.

http://www.academicmind.com/unpublishedpapers/business/management/2008-06-000aao-delta-an-anyalytical-view.html

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