The Generic strategies

The Generic strategies - No capabilities for first-class...

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The Generic strategies:(southwest, Wal-Mart) Low cost: based on ability to delivery products/services at a lower cost than competitors Pass on to customer in lower costs Integrated:(IKEA, McDonalds) Differentiated , yet still low cost Danger--getting stuck in the middle. Differentiation: Offer products or services with unique characteristics in terms of quality, features, reliability. Set prices near average and reap gains though volume and market share. Set premium prices to reap gains from higher margins (Apple) Inputs: Motherboards, chips, operation system, application, case, monitor, BIOS:runs before any other OS Assembly: manufacture PC Why does this PC industry become such a open ? Continue to improve the products. Tangible resource Intangible resource If you have resources, and you don't use it. Then it's not valuable for you any more. The southwest they don't have the following capabilities: Coordination, weather issue, they didn't coordinate with other airlines or ticket agencies. Major cities.
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Unformatted text preview: No capabilities for first-class. There is no international flights. Air flight attendances, they didn't have a system for seat assignment. Short flight strategies. Conveniences schedules for southwest. What did southwest actually do? Initiated service to Baltimore from Chicago Midway and Cleveland Eventually you ran out of growth strategies. You don't have stuff to do. Acquisition for companies, the buying company's stock will go down. Because a lot of people may think it's gonna bad, they may not make profits on it. What about the Southwest AirTran merger in 2010? The culture problem, and how to train the other airlines people's culture to fit into Southwest culture. Good resource to go to Florida. How to interpret that? 80% learning rate: what does that mean. with every doubling of output, the costs are 80% of what they were before, so they've gone down 20% with an 80% learning curve....
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