HRIM381 Lecture Notes - Lecture 7: Niche Market, Swot Analysis, Southwest Airlines

• School: University of Delaware
• Department: Hotel, Restaurant and Institutional Management
• Course: HRIM381
• Professor: Jing Ma

Document Summary

Review for last class: swot strengths, weaknesses, opportunities, threats, five forces competition, threat of new entrants, power of customers, power of suppliers, threat of substitution, what"s the differences between the two. Strategic position: cost leadership (no frills) vs. differentiation (creating uniquely desirable products and services, focus (offering a specialized service in a niche market) Increasing profits by reducing costs, while charging industry-average prices. Differentiation strategy: differentiation involves marking your products or services different from and more attractive than those of your competitors, to make a success of a differentiation strategy --- Focus strategy: concentrated on particular niche markets, by understanding dynamics of that market and unique needs of customers within it, develop uniquely low-cost or well-specified products for market. Position in market: walmart/mcdonald"s cost leadership, apple differentiation, southwest airlines focused cost, rolex/honest tea focused differentiation. Choosing the right strategy: one and only one strategy, cost leadership requires a very detailed internal focus on processes.