US airline industry

Looking at the overall performance of the US airline industry during the last 20 years of the case study, I want you to think about the extent to which the industry’s low average profitability during this period can be attributed to the structure of the industry rather than just cyclical and situational events. In your analysis apply Porter’s five forces and determine which force(s) has had the biggest impact in depressing industry profitability. Then considering your determinations, think about what the outlook for industry profitability going forward are and what are strategies by the airlines to date that have been effective in moderating the forces of competition. Then develop alternative strategies that the airlines could use to improve their position and or the industry’s profitability in the future.

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