Problem
The concept of an 'overall cost leadership strategy is based on creating a low-cost position compared to the other competitors in the industry. On the other hand, the strategy of differentiation consists of creating differences in the firm's product or service offering by creating something that is perceived industry-wide as unique and valued by customers. These strategies help in improving the competitive position vis-à-vis the five forces in the industry.
There are business examples of Spirit Airlines (Case 16), and Southwest Airlines (Case 17) within the recommended textbook (David et al. 17th Edition). Using these cases, your group is required to address below points:
a) Discuss the advantages and disadvantages (pitfalls) of the firm pursuing overall cost leadership or differentiation. Include in your discussion if the company in question is facing any or all of the pitfalls associated with the selected strategic approach.
b) Discuss your recommendations for the future direction of these companies, for instance, if they can (or should) engage in related or un-related diversification.