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A FIVE FORCES ANALYSIS OF THE U.S. AIRLINE INDUSTRY.

17107. A FIVE FORCES ANALYSIS OF THE U.S. AIRLINE INDUSTRY.

This paper explores how competitors within the U.S. airline industry could use Porter’s (1980, 1991) Five Forces model to analyze competition within their industry and formulate appropriate strategies. The five forces in the U.S. airline industry are analyzed with reference to recent industry trends (e.g., increasing concentration, entry of new low-cost competitors, application of technology to reduce distribution costs, movement toward global alliances and towards deregulation, evolution of open skies agreements) and recent events in the global environment that have particularly impacted competitors in the U.S. airline industry (e.g., growth of Internet and related technologies, economic recession, and 9/11 terrorist attacks). Keywords: airlines competition Porter recession terrorism technology southwest airlines. Written 2002. 7 pages; 14 footnotes; 12 bibliographic sources. 1,658 words.

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