TakeFlight Airways Is a New Entrant to the Airline Industry

question 67

Multiple Choice

TakeFlight Airways is a new entrant to the airline industry.While most of its competitors are pursuing a cost-leadership strategy, TakeFlight Airways has decided to execute a differentiation strategy.Which of the following is the most likely implication of this decision?

• A) TakeFlight Airways will not gain a competitive advantage in the airline industry.
• B) TakeFlight Airways will gain a competitive advantage by reducing its prices.
• C) TakeFlight Airways will face low profit potential by pursuing a different strategy.
• D) TakeFlight Airways will create value for customers by delivering unique features.

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Definitions:

Offshoring

The relocation of a business process or operation from one country to another, typically for lower costs or other strategic benefits.

Resource Markets

Markets where resources or inputs used to produce goods and services, such as labor, capital, and raw materials, are bought and sold.

Absolute Advantage

A situation where a country or entity can produce more of a good with the same amount of resources than other countries.

Production

The method of producing goods or services through the integration of different inputs such as work, materials, and technology.