Question

A product-positioning rule given in the chapter is that “When there are only two competitors, the middle becomes the preferred strategic position.” Illustrate this for the cruise ship industry, where two firms, Carnival and Royal Caribbean, dominate. Illustrate this for the commercial airliner building industry, where Boeing and Airbus dominate.

Answer 1

For example, The Carnival and Norwegian and the Royal Caribbean.

While the Carnivals standard cabin are big, th options are less innovative. Norwegian is a great at trendsetting and entertaining. Carnival has always provided a party atmosphere.

Royal Caribbean just slightly edges out Norwegian as the better cruise line overall.

Royal Caribbean is slightly costlier as compared to Carnival.

Sometimes It depends on which category you consider it to be middle one and make it a strategic position owing to cost, luxury, party etc.

As far as airline industry is concerned, Boeing is better than the Airbus as airbus aircrafts cannot be taken out of operating envelope.

Now Lockheed Martin is again one of the greatest competitors of Boeing in aircrafts.

Similarly it depends as to if Boeing becomes your best middle option.

Thanks.