Southwest Airlines Uses an Overall Cost Leadership Strategy

question 12

Multiple Choice

Southwest Airlines uses an overall cost leadership strategy. This could fail if it

• A)cannot maintain parity on differentiation dimensions requested by customers.
• B)maintains parity with competitors on low cost.
• C)exceeds customer expectations.
• D)increases its sales prices while maintaining competitor parity.

---

Definitions:

Expected Useful Life

The estimated duration for which an asset is expected to be economically usable by one or more users.

FASB

The Financial Accounting Standards Board is an independent organization responsible for establishing accounting and financial reporting standards for companies and nonprofit organizations in the United States.

Franchise

A license that allows the franchisee to access a business's proprietary knowledge, processes, and trademarks to allow the party to sell a product or provide a service under the business's name.

Product Development

The complete process of bringing a new product to market, from idea generation to commercialization.