Competing with low-cost carriers: Alaska Airlines

Access case materials here.

Situation

In 2018, Alaska Airlines introduced its Saver Fare, which offers customers a fare option that is about $30 less than an economy fare and that has limited amenities (i.e., no flight changes, last to board, assigned or limited seats). Alaska is responding, it appears, to the increased competitive threat of low-cost carriers such as Spirit Airlines and is following similar moves by Delta, United, and other traditional airlines. Do you believe Alaska’s introduction of the Saver Fare was a good strategic move? More specifically, will it attract customers who might normally fly on low-cost carriers and improve Alaska’s profitability?

Directions

In 600 words or fewer (excluding references, tables, or figures), respond to the question above. Use concepts from class (e.g., six strategy domains and business model fit, strategic targeting & positioning, value-price-cost framework, efficiency frontier, resource-based view, capabilities) and your own research to create a cogent argument.

You may collaborate with your classmates and ask them to edit your paper, but the writing must be your own.

Either use endnotes or hyperlinks within the text to cite your references. If using endnotes, you may follow APA, MLA or Chicago guidelines for the references. References do not count toward your word limit.

Recommendations

You should craft your response such that it presents a central point and all of your arguments works to support that point. Further, your arguments should flow logically from beginning to end. Do not present multiple disparate arguments hoping that at least one of them is credible. Instead, build arguments that support one another and work to bolster your central point.

You must use qualitative and quantitative evidence to support the arguments you make. Do not make a claim and leave it unsubstantiated. The articles and data I provide can help you build support for your arguments.

Moreover, your arguments must be well written to be compelling. Use correct spelling and grammar. Make sure each paragraph presents only one idea, not multiple. Omit needless words. Avoid jargon. Use the active voice. Use headings instead of transition sentences. And avoid obtuse and abstract descriptions; be specific and concrete.

If you struggle to write well, I encourage you to seek help from the writing center and your peers. If you are concerned about your individual challenges with writing, please visit with me.

I strongly suggest that you ask a peer to read your response. Have them point out where your arguments are weak or difficult to follow. Peer review is an excellent way to improve your writing.

Use the curated articles and data I provide in thecase folder to conduct your analysis, but some of the materials may not be useful for this particular question. (The materials are curated such that different strategic questions could be asked; not all material may be relevant to this particular question.) Skip materials that do not help you answer the question or build your argument. Moreover, you may search for additional materials beyond what I provide if you need additional facts and data to bolster your argument or to complete your analysis.

Your response must be pithy to be both convincing and adhere to the word limit. You may want to first draft a longer response and then eliminate parts of your argument that are redundant or less compelling. You will need to draw on some class concepts to make your argument logically sound, but you do not need to use all of them. Only use the concepts that help you respond in a convincing way.

Further, you do not need to summarize the case or write an introduction. Simply begin your argument. (I wrote the assignment, so you do not need to summarize it for me.)

Rubric

90 – 100 pts	The argument is clear and presents sound logic. It correctly applies class concepts to the question at hand. The claims are supported by good evidence. The writing is concise and compelling. It uses correct spelling and grammar. The paper is easy to follow start to finish and demonstrates that the student conducted a thorough analysis. Overall, the paper is sound but may have minor flaws.
80 – 89 pts	The argument is generally okay, but displays one or more of the following weaknesses: the argument is unclear or difficult to follow, it does not apply or incorrectly applies class concepts, it is poorly written, or it fails to correctly include evidence to support its claims. Overall, the paper is reasonable but lacks in one or more important ways.
60 – 79 pts	The argument is incoherent or poor, and it contains multiple weaknesses: the argument is unclear or difficult to follow, it does not apply or incorrectly applies class concepts, it is poorly written, or it fails to correctly include evidence to support its claims. Overall, the paper is unconvincing.
0 – 59 pts	The student did not follow directions or otherwise showed little effort to address the question.