Read the short account of the US airlines industry and prepare
a 2,500 word report that addresses the following:

? 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 the 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 in order to
improve its chances of being persistently profitable?

Structured as follows:

? Introduction (3 marks)
? Overview of the US airline industry (5 marks)
? Five forces analysis of US airline industry
o Diagram (2 marks)
o Components (8 marks)
o Advantages and disadvantages (5 marks)
? Economic performance (5 marks)
? Identifying strategies for airline profitability (5 marks)
? Discussion (5 marks)
? Conclusion (2 marks)

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