US Airline Industry
With the aid of a clearly drawn diagram conduct a competitive forces analysis of the U.S. airline industry. What does this analysis tell you about the causes of low profitability in this industry? What are the principal advantages and disadvantages of using Michael Porter’s five forces framework? • The economic performance of the airline industry seems to be very cyclical. Why do you think this is the case? • Given your analysis, what strategies do you think an airline should adopt to improve its chances of being persistently profitable?