Question

Unlike its competitor, Southwest Airlines, what business-level strategy does Virgin America use?

a. Broad low-cost

b. Broad differentiation

c. Focus low-cost

d. Focus differentiation

Virgin competes in the same strategic group as which of the following airlines and so would have more difficulty gaining competitive advantage?

a. Southwest charges low fares on routes that have little or no in-flight amenities.

b. JetBlue controls expenses in order to increase its revenue per passenger mile.

c. Delta frequently purchases used aircraft to lower its acquisition prices and keep expenses down.

d. Emirates offers amenities such as private cabins and seats that extend into beds for long flights.

Answer 1

• d. Focus differentiation
• a. Southwest charges low fares on routes that have little or no in-flight amenities.