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US Airlines Industry – Porter's Five Forces Strategy Analysis

  • ID: 585727
  • Report
  • November 2016
  • Region: United States
  • 25 pages
  • Aruvian Research
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The US airline industry is dominated by four major airlines, namely, United, American, Delta and Southwest. In recent years, the US airline industry has undergone a major shift and has expanded its base both domestically as well as in international services. Competition remains high and passengers are having to shell out more for fares and fees as airlines hike their fees in order to meet the growing demands of the economically tough environment.

The research analyzes the US Airlines Industry in Michael Porter’s Five Forces Analysis. It uses concepts developed in Industrial Organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Porter referred to these forces as the microenvironment, to contrast it with the more general term macro-environment. They consist of those forces close to a company that affect its ability to serve its customers and make a profit. A change in any of the forces normally requires a company to re-assess the marketplace.
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A. Executive Summary

B. Introduction to the Industry
B.1 Industry Definition
B.2 Industry Profile
B.3 Future Outlook

C. Porter’s Five Forces Strategy Analysis
C.1 Bargaining Power of Buyers
C.2 Bargaining Power of Suppliers
C.3 Competitive Rivalry in the Industry
C.4 Threat of New Entrants
C.5 Threat of Substitutes

D. Conclusion

E. Glossary of Terms
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