For Many Years, Southwest Airlines Distinguished Itself as the Low-Cost

question 46

Multiple Choice

For many years, Southwest Airlines distinguished itself as the low-cost airline. Now, many other low-cost competitors have entered the market. Similarly, Southwest was one of the first airlines to offer online ticketing. Now, all airlines have online ticketing. These examples suggest that

• A) no single strategy is likely to be sufficient to build a sustainable competitive advantage.
• B) situation analysis is a continuous process.
• C) customers rarely remain loyal to companies.
• D) product excellence is the only true source of a sustainable competitive advantage.
• E) innovation is pointless because competitors will develop copycat offerings.

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Definitions:

Energy Input

The amount of energy required to produce a given level of output or to perform a specific task.

Replacement Rate

The total fertility rate necessary to offset deaths in a country and thereby keep the size of its population constant (without relying on immigration). For most countries, a total fertility rate of about 2.1 births per woman per lifetime.

Total Fertility Rate

The average number of children a woman would have over her lifetime, given current birth rates.

Subsistence Levels

The minimum level of income or resources that is considered adequate to maintain life and health.