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Essay / Research Paper Abstract
This 10 page paper undertakes an environmental analysis of the US passenger airline industry using Porters 5 Forces framework and a PEST analysis. The paper looks at the issues from the perspective of Southwest Airlines but factors identified and discussed apply to the entire passenger airline industry in the US. The bibliography cites 8 sources.
Page Count:
10 pages (~225 words per page)
File: TS65_TE5Fpestsw.doc
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Unformatted sample text from the term paper:
Influences 9 3.2.4 Technological Influences 9 4 Conclusion 10 References 11 1. Executive Summary Southwest Airlines is one of the most successful firms in
the US. Following the acquisition of AirTran it is now the largest domestic carrier. The company operates in a highly competitive industry, and while the threat of new entrants is
relatively low due to the high barriers, there is a high level of competition from the existing airlines, which is supported by relatively low switching costs for the passengers. Loyalty
schemes may help to encourage loyalty, but they are unlikely to prevent effective competition, especially in the more price sensitive sectors of the aviation industry. The cost structure has also
been impacted by the general political environment and need for increased security, as well as rising costs such as oil, while the airlines have suffered due to the falling demand
that resulted from the recession. As the industry moves into recovery, with demand for US airlines expected to increase by 0.5% in 2012 there are some opportunities such as increased
flights abroad and increasing differentiation are adopting new technology, while the main threats of competition and economic influences are likely to remain in place for some time. 2. Introduction Southwest
Airlines is the largest and arguably one of the most successful US domestic airlines. The firm has not gained this position as a result of chance. Southwests success has been
the result of strategic planning and forward thinking. To undertake successful planning firms need to understand the environment in which they are competing and adapt to minimise threats as well
as take advantage of potential opportunities. The strategy may then be determined with reference to the firms internal resources and capabilities to find a good fit between the firms and
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