A. cost leadership Peoples\' airline is following the cost leadership, which is

Question

A. cost leadership

Peoples' airline is following the cost leadership, which is why it is cutting down all elements that add to the cost by operating "no frills" flights without reserved seating, no snacks or meals and smaller planes. Also flying to smaller airports away from the city centers results in lesser costs associated with airport admin. All these efforts collectively result in cost reduction, which enables the airline to offer cheaper fares. This gives this airline competitive advantage by being cost leader.

Explanation / Answer

People's Airlines offers what it calls "no frills" flights: no reserved seating, no snacks or meals on flights, small planes that fly to smaller airports away from the city centers. People's Airlines is likely following a________ strategy.

A.

cost leadership

B.

differentiation

C.

quality

D.

focus

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