Before answering this discussion question you will need to conduct a review of the US Airline Case on pages 473-487 of the course text and any additional resources necessary to conduct and industry analysis on the airline industry.
Before writing your response, using the textbook and knowledge you have about the airline industry, complete the industry analysis.
- Provide a rating for each area and provide a short justification for the rating: Rate High, Medium, Medium to Low, or Low.
- Threat of new entrants
- Rivalry among existing firms
- Bargaining power of buyers/distributors
- Bargaining power of suppliers
- Relative power of other stakeholders
Once you have conducted your analysis answer the following disquestion questions:
- Are any of the forces changing? Please explain.
- Evaluate the future level of competitive intensity in the airline industry, based on this evaluation, would you invest or look for a job in this industry? Please explain.