QANTAS Ad on TV

[albatross710]

"Stuck in the middle" is just a cute but meaningless marketing spin phrase from Qantas who would be very glad to have seen it swallowed whole. Even if the Qantas and Jetstar brand strategies are exactly for each of them it does not follow that there is anything wrong with our strategy.

I believe that the term 'Stuck in the middle' comes from the famous strategy 'spin master' Michael Porter of Harvard fame regarding the selection of his generic strategies.

While his 1970's strategy selection model has come under question during the GFC in the context of the point being made

A firm positions itself by leveraging its strengths. Michael Porter has argued that a firm's strengths ultimately fall into one of two headings: cost advantage and differentiation. By applying these strengths in either a broad or narrow scope, three generic strategies result: cost leadership, differentiation, and focus. These strategies are applied at the business unit level. They are called generic strategies because they are not firm or industry dependent.

My understanding:

Low cost producers: Tiger, Jetstar & Virgin Blue (1999 - 2003?)

Differentiators: Qantas ( meals, baggage, full service)

Perhaps consider that Virginblue is not stuck in the middle as much as transitioning to being a differentiator, no longer able to be the low cost competitor needed to be in that league.

Further details can be found in one of the 30,000 MBA courses on offer or lighter reading online at Porter's Generic Strategies