Case: SkyWest, Inc. and the Regional Airline Industry in 2009 Assignment Questions:
What are the general economic conditions of the U.S. regional airline industry macroenvrionment? What is the relationship of the industry to the national and global airline industries? The U.S regional airline industry has been suffered and experienced declining of their profit. This case can be explained by the component of macro-environment. Focuses on the global forces and technology, the businesses nowadays have been changed dramatically to global business. What I meant by that is, not only do the business in domestically, but also with different nationality partners. It could lead them to think then, if the business has been changed to globally, more people will fly with the airline industry. However, the technology improved day by day tremendously that people who are doing the business do not required to fly. They can do the business by telecommunication, email, live meeting with visual, or etc. This improved technology could be the one reason that decline the passengers typically in categorized in business travelers. Another factor is General economic conditions. Lately, the world economy is experiencing a long recession which affect almost all the businesses not only just the airline industry. Many countries have difficulties with managing their financial status. The relationship between national and global airline industries seems does not too much different. Both U.S national airline industry and global airline industry are suffering from rising fuel cost, global recession, improved technology, safety issues, and etc. The world is connected as big one nation these day. If one failed, all the other parts will be falling apart as well. It’s just a matter of time when it would happen.
What does a Five Forces analysis of the industry tell you about competition in the regional airline industry? Which forces tend to be the strongest? The weakest? The five forces...
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