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How can Tap air Portugal increase its competitiveness against global carriers with lower cost structures?-Ana exploration of the cost-leadership strategy
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Resumo(s)
The airline industry is characterised by intense competition and persistent cost pressures, particularly for mid-sized network carriers positioned between low-cost airlines and large global airline groups. This work project examines how such carriers can achieve
competitive advantage by applying Porter’s generic strategies framework. Using TAP Air Portugal as a qualitative case study, the group research draws on academic literature, industry reports, and internal company insights to assess the feasibility of cost leadership, differentiation, and focus strategies within a structurally constrained industry. The individual component examines the viability of a cost leadership strategy for TAP Air Portugal. By analysing the airline’s cost structure, operational configuration, and network economics, the study finds that TAP’s structural constraints and legacy cost base prevent it from achieving a sustainable cost leadership position relative to low-cost competitors, limiting the strategic feasibility of this approach.
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Palavras-chave
Porter's generic strategies TAP Cost-leadership Differentiation Focus Aviation industry Airline