Title: Innovator's Dilemma
|Date:||February 2, 2016|
|Length:||3 / 787|
|No of views:||0|
|Essay rating:||good 0, average 0, bad 0 (total score: 0)|
Continental created Continental Lite, which directly replicated some of Southwest’s activities, such low-cost fares with no first-class seating or meal offerings. In so doing, they alienated travel agents, a large source of clientele for their core business with low commissions, and they mismanaged their existing business customers who valued service associated with the Continental name...
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By imitating only a few individual activities, without the whole system of Southwest’s low-cost, high convenience strategy, they lost a great deal of money and loyalty.
Porter argues that although operational effectiveness (OE) is essential, it will never differentiate a company and provide long-term profitability the way strategy does...
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