Question 1: Why did the major full-service airlines like Delta and Continental not do well but low-cost
Question:
Question 1: Why did the major full-service airlines like Delta and Continental not do well but low-cost carriers like Southwest and JetBlue did well in the same industry environment? (Hint - How did differences between the strategies and value chain activities of full-service airlines and low-cost airlines contribute to differences in competitive advantage and performance?).
Question 2: Why have full-service airlines not been able to imitate the success of their low-cost competitors? Even when airlines like Delta launched low-cost subsidiaries like Delta Express, such strategies have failed. Why?
Question 3: Mark Balloun's team at Delta is considering multiple strategic options. One of the options is the launch of a new low-cost subsidiary. Do you think this is a good strategic option for Delta? If yes, explain why. If not, explain why not?
Financial and Managerial Accounting
ISBN: 978-0132497978
3rd Edition
Authors: Horngren, Harrison, Oliver