Some industries (e.g., airlines) are characterized by lower average profitability of firms than other industries (e.g., pharmaceuticals). Using Porter's model, describe three industry forces in Porter's model that are likely to be stronger for an airline firm than for a pharmaceuticals firm providing relevant arguments.
Tata Motors currently adopts a cost-leadership strategy in the Indian automobile industry and has some of the lowest-priced car models in the world. Discuss two reasons why a purely low price strategy may be risky for the company in the long-run. Also, suggest an approach that the company could use to build more differentiation without reducing its cost-leadership position significantly, explaining how this would work.