Business Strategy: The Business-Level Strategy Of Porter Airlines

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Register to read the introduction… Strategy is formed at four organizational levels. For the sake of this analysis I will only be focusing on the business-level strategy. Business-level Strategy is defined as “a plan to combine functional core competencies in order to position the organization so that it has a competitive advantage in its domain” (Jones, 2010). The business level strategy is the responsibility of the top management level (which relates to matching organizational structure, which will be discussed later on) and it is their job to decide how to position the company in order to successfully use coordination abilities and compete for resources to develop competitive advantages. According to Jones, an effective business-level strategy will do two things. First, it will select the domain the industry will compete within and secondly, it will position the company so it can use its resources and coordination abilities provided in the environment to protect or enlarge its domain (Jones, 2010). The two fundamental ways an organization can create value are by reducing cost of its value creation activities (Low-cost strategy) or by performing those activities in a way that gives its products a differentiated appeal (differentiation strategy). For the …show more content…
These 3 competitive advantages are: Speed, Service and Convenience. These competitive advantages are derived from the core competencies identified above and are the foundation to Porters low cost business-level strategy. Their first competitive advantage is Speed and defined as their quick check-in lines, industry short gate to gate times, as well as faster turnarounds (minimizing time on the ground). Their second competitive advantage is Service. This competitive advantage is very unique because instead of trading off customer comforts for price (following the industry trend) Porter includes premium service perks, in all classes of fares, including free wine, snacks, free wifi, computers and espresso bars in some of their airport lounges. Their motto, which helped in defining this competitive advantage, is “flying refined,” emphasizing on providing superior quality service without the added costs. Their last competitive advantage, and arguable their strongest, is convenience. This refers to their location, with respect to the main Toronto airport, business travelers, the main focus of the company, could leave downtown Toronto, taxi for 5 minutes and board in less than an hour. With Pearson being an international hub and located 2 hours outside of the downtown core it cannot compete

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