Cost strategy

How important is innovation for the long-term survival and growth of service firms? Why? Can you give examples?

Would you consider this importance the same for all sorts of service industries? Why/why not?

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Cost strategy
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1. Why do flag carriers in the airline industry create separate ventures in order to compete with the low cost carriers? Why don’t they integrate the low cost strategy into their traditional high service strategy?

2. What are the themes to be included in a service firm’s strategy statement?

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