Percorrer por autor "Fonseca, Gabriel Grandi Sampaio Andrade"
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- Low-cost differentiation and competitive advantage : the case of Southwest AirlinesPublication . Fonseca, Gabriel Grandi Sampaio Andrade; Morais, Ricardo AlexandreThis study complements Michael Porter’s assertion that firms must choose between cost leadership and differentiation to achieve competitive advantage. It argues instead that a third business strategy is possible: low-cost differentiation. By analyzing the case of Southwest Airlines (SA), this study answers the following research question: How low-cost differentiation influences competitive advantage? The research strategy adopted is case study research , combining primary data from interviews and secondary data from financial reports and websites. This study concludes that low-cost differentiation provided SA with sustainable competitive advantage. By eliminating non-essential service attributes and by maximizing critical service attributes, SA was able to provide a differentiated offer at a reduced cost. It thus complements Porter’s dichotomy between a standard offer with a lower cost in cost leadership and a differentiated offer with a higher cost in differentiation. This third business strategy can thus be called low-cost differentiation.