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Airlines should build their competencies in such a way that they can satisfy their

customer’s needs and preferences which can be achieved through adopting the right
business level strategy/strategies where a set of actions can be taken so value is
provided to the customers. On the other hand, the firm itself gain a competitive
advantage in its specific products or services so the firms can keep and advance
their position in the market. The five business level strategies can be adopted and
applied within the airline industry so the airline firm can build its competitive
advantage and keep competing with the other firms within the industry.

Cost leadership is characterized by the lowest cost within the services and the
products provided that is suitable and acceptable to the airline customers. This
strategy allows the airline firm to compete with the other firms using the low price
product or services provided to attract customers. This strategy is observable in the
airlines industry where most of the airline firms such as American airline, Delta
airline, South West and others offer low fares to attract more customers while
maintaining a good quality as possible.

Differentiation strategy is characterized by offering differentiated products or services

to gain customers loyalty within the airline industry. These differentiated products or
services should be unique so the customers sensitivity to the increase of the prices
decrease or does not change. We can also observe this strategy in most of the airline
companies where they offer different classes such as first class, business class,
economy flex and economy so the customers have different choices of the product
and service provided.

Focused cost leadership is based on providing the lowest cost for the products and
services with a significant level of features that are targeted a specific group of
customers; A small segment of the market. This strategy can be observed in some of
domestic airlines such Frontier airline where it focuses its business domestically in
couple of states rather than expanding and targeting customers that fly
internationally. So, Frontier is competing with the other airlines in a segment of the
market; domestically.

Focused differentiation is based on offering different products and services that are
valued by a segment in the airline industry. Frontier airline is also an example
pursuing this strategy where it does offer different products and services such as the
classes on its flights competing with the other flights that operate domestically.

Last strategy is the integrated leadership/differentiation which is a combination of the

first two strategies where it is characterized by offering low cost but it is higher than
the cost offered in cost leadership and product differentiation but with a less level of
differentiation in the differentiation strategy. JetBlue airline pursuing this strategy
where the airline offers low cost differentiated products and services that can be
extinguished than the other airline such as the seats extra leg room in cabin class
and screens that other flights do not offer.