Bus 4940-001 Week 1 Analysis Of The Fast Food Industry
Student: Hieu Ngo
Instructor: Derek D 'Souza
Date: 02/14/2015
Analysis of the Fast Food Industry
BUSI 4940-001
Individual Assignment Part-1
Introduction
Airline industry is the topic I researched in this analysis. Companies in this industry provide scheduled domestic and international passenger transportation, mail and freight transportation. Major US companies include American Airlines, Delta, Southwest, and United Continental, as well as the air operations of express delivery companies such as FedEx and UPS. The industry key survival factors are efficient operations, reliability of services, and safety. The drivers of change are internet economy, globalization, and low cost competition. Based on the key survival factors and drivers of change, …show more content…
Nowadays, travelers can book e-tickets on their flights through the airlines’ websites or a third-party website. This has allowed airlines to eliminate paperwork, reduce operational expenses, and bypass travel agent commissions. Moreover, the potential in the global travel market makes airlines companies focus more on globalization. To facilitate international growth, U.S. airlines are lobbying for “open skies” treaties between the U.S. and other nations. These treaties are bilateral agreements that essentially deregulate travel between the involved countries, thus opening up certain markets to competition. “The U.S. currently has signed more than 60 open skies treaties with nations around the globe.” Finally, the rise of the low-cost carriers has forced a change in the competitive environment of the air travel industry. Southwest, and JetBlue implement low-cost strategies that allow them to offer relatively low airfares. These low fares change the entire industry and force rivals to lower their costs and decrease their fares in order to stay …show more content…
Both business and tourist travel are reduced when the economy slows. “Global aviation traffic typically rises and falls at twice the pace of economic output, so a change in the economy can double the impact for airlines.” Because of relatively high fixed costs of airplanes, airport facilities, and labor, airlines can 't easily adjust to reduced passenger traffic. Based on the financial results on Hoover’s database, the industry has a very low growth rate of personal consumption expenditures as of 2014, and it was forecasted to grow at an annual compounded rate of 4 percent between 2014 and 2018.
Works Cited
Mouawad, Jad, and Christopher Drew. "Airline Industry at Its Safest Since the Dawn of the Jet Age." The New York Times. The New York Times, 11 Feb. 2013. Web. 16 Feb. 2015. <http://www.nytimes.com/2013/02/12/business/2012-was-the-safest-year-for-airlines-globally-since-1945.html?pagewanted=all&_r=0>.
"Competitive Environment of the Airline Industry." Competitive Environment of the Airline Industry. Web. 16 Feb. 2015. <http://mis.kent.edu/Users/weinroth/public/July 8 Southwest Progress Report.htm>.
"Good times for the Airline Industry." The Economist. The Economist Newspaper, 27 Dec. 2013. Web. 16 Feb. 2015.
Instructor: Derek D 'Souza
Date: 02/14/2015
Analysis of the Fast Food Industry
BUSI 4940-001
Individual Assignment Part-1
Introduction
Airline industry is the topic I researched in this analysis. Companies in this industry provide scheduled domestic and international passenger transportation, mail and freight transportation. Major US companies include American Airlines, Delta, Southwest, and United Continental, as well as the air operations of express delivery companies such as FedEx and UPS. The industry key survival factors are efficient operations, reliability of services, and safety. The drivers of change are internet economy, globalization, and low cost competition. Based on the key survival factors and drivers of change, …show more content…
Nowadays, travelers can book e-tickets on their flights through the airlines’ websites or a third-party website. This has allowed airlines to eliminate paperwork, reduce operational expenses, and bypass travel agent commissions. Moreover, the potential in the global travel market makes airlines companies focus more on globalization. To facilitate international growth, U.S. airlines are lobbying for “open skies” treaties between the U.S. and other nations. These treaties are bilateral agreements that essentially deregulate travel between the involved countries, thus opening up certain markets to competition. “The U.S. currently has signed more than 60 open skies treaties with nations around the globe.” Finally, the rise of the low-cost carriers has forced a change in the competitive environment of the air travel industry. Southwest, and JetBlue implement low-cost strategies that allow them to offer relatively low airfares. These low fares change the entire industry and force rivals to lower their costs and decrease their fares in order to stay …show more content…
Both business and tourist travel are reduced when the economy slows. “Global aviation traffic typically rises and falls at twice the pace of economic output, so a change in the economy can double the impact for airlines.” Because of relatively high fixed costs of airplanes, airport facilities, and labor, airlines can 't easily adjust to reduced passenger traffic. Based on the financial results on Hoover’s database, the industry has a very low growth rate of personal consumption expenditures as of 2014, and it was forecasted to grow at an annual compounded rate of 4 percent between 2014 and 2018.
Works Cited
Mouawad, Jad, and Christopher Drew. "Airline Industry at Its Safest Since the Dawn of the Jet Age." The New York Times. The New York Times, 11 Feb. 2013. Web. 16 Feb. 2015. <http://www.nytimes.com/2013/02/12/business/2012-was-the-safest-year-for-airlines-globally-since-1945.html?pagewanted=all&_r=0>.
"Competitive Environment of the Airline Industry." Competitive Environment of the Airline Industry. Web. 16 Feb. 2015. <http://mis.kent.edu/Users/weinroth/public/July 8 Southwest Progress Report.htm>.
"Good times for the Airline Industry." The Economist. The Economist Newspaper, 27 Dec. 2013. Web. 16 Feb. 2015.