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US Airways competes with a Differentiation Strategy on a global scale. As this airline has a very broad market scope, as evidenced by the myriad of routes, aircraft, service and loyalty levels the company has in place, the Differentiation Strategy aligns best to their business model. The Differentiation Strategy for U.S. Airways is also supported by hwo the company chooses to use price optimization and code sharing throughout the airline industry. As U.S. Airways serves many secondary markets through routing from their hubs and secondary hub route configuration models, the airline is able to reach many cities larger competitors cannot. U.S. Airways sees these service options and flight availability as a significant competitive advantage, pricing their flights at a premium in underserved markets in the process. By doing this, U.S. Airways makes their differentiated service strategies further drive higher levels of profitability.
Over time U.S. Airways has designed their global...
U.S. Airways uses this approach to gain profitability in the execution of their Differentiation Strategy. The continued build-out of their hub-based strategy throughout Asia-pacific also will follow this pattern, ensuring the company's continued profitability following a highly differentiated strategy.
References
Akan, O., Allen, R.S., Helms, M.M., & Spralls, Samuel a., I.,II. (2006). Critical tactics for implementing porter's generic strategies. The Journal of Business Strategy, 27(1), 43-53.
Allen, R.S., & Helms, M.M. (2006). Linking strategic practices and organizational performance to porter's generic strategies. Business Process Management Journal, 12(4), 433-433.
Porter, M.E. (1990). New global strategies for competitive advantage. Planning Review, 18(3), 4-4.
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