Mcdonalds Vs Jetblue

In a low-cost strategy, focus is on low pricing and efficiency (Parnell, 2008). Companies that operate with a low-cost strategy typically offer basic products and services that appeal to a mass market of bargain-price minded consumers. Most businesses using this strategy are large and established and focus on low-operating costs, low initial investments, basic-quality low-cost items, and high operating and distribution efficiency. Challenges of the low-cost strategy are high price competition, product and leadership imitation, and technological obsolescence.

In a differentiation strategy, focus is on products or services that can be readily distinguished from its competitors (Parnell, 2008). Companies that operate with a differentiation strategy typically offer new products and markets opportunities to the entire industry. Most businesses using this strategy are also large and established, but they focus on new products, new technology, distinctive service, and flexibility to keep up with new developments. The main challenge of the differentiation strategy is to have highly distinctive products and services that consumers value above that of similar products and services offered by

Nevertheless, this combination strategy has been successful for businesses such as McDonald’s and JetBlue, so it can’t be stated that the low-cost-differentiation strategy is ineffective. I believe that this combination can be very effective when focus is on high-quality goods and services through product innovations, high operating and distribution efficiency through process innovations, maximum customer value though value innovation, and enhanced competitiveness through structural