Steep and Porter’s Six Forces Analyses for the Us Airline Industry

Topics: Airline, Delta Air Lines, Northwest Airlines Pages: 4 (1305 words) Published: April 21, 2012
Superficial STEEP and Porter’s Six Forces analyses for the US airline industry.

Internet Availability: The availability of internet to the general public gave the airline industry a lot of competition. Before there was much more price control from the airlines themselves and prices could be raised or lowered whenever they felt necessary. Only travel agencies had this information available other than the airlines themselves. Internet availability has regulated a lot of price fluctuation because the much wider consumer range through the internet demands this. •New products: The only just new e-tickets are soon going to be a thing of the past just like the good old paper tickets. Technology advances very quickly now a days and recently most major carriers use Bar Codes that are available on most smart phones. Soon enough the boarding pass all together may disappear. Major carriers all over the world have agreed to a standard for cell phone check-in according to the News. This can make check-in more efficient and at the same time reduce paper waste worldwide.

Consumer Activism: Consumers have a lot to say and to what extent their opinions matter is the decision of each company. There is the well-known saying that “the customer is always right” So should the industry make changes to support their customer in every aspect? That is where the conflict of interest begins because each side has to safeguard its own interest. For example in an attempt to regulate things, in 2008 Airlines filed a formal appeal of the Passenger Bill of Rights. Also in 2010 the airline industry faced a wave of governmental and union rules. Such changes had not been seen in the industry in a generation, mainly because the industry was much deregulated. In conclusion, the consumer input is a great factor that will always keep changing the industry. The concerns and requirements consumers have this days are not...
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