Student: Hieu Ngo
Instructor: Derek D'Souza
Analysis of the Fast Food Industry
Individual Assignment Part-1
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, large companies enjoy economies of scale in purchasing and the ability to provide more extensive services. Small airlines can compete by serving local or regional routes. All the information was collected from online journals, news, and research and report papers. The sources include industry reports such as Hoover, Bloomberg, and Forbes. The data was organized by folders and then summarized into Words before putting in the paper. Each source was written in a separate Word file every time it was used. The analysis uses the Porter’s 5 forces and PEST analysis. Key Survival Factors
In airline industry, demand depends highly on the health of the economy, which affects spending on business and leisure air travel. Since many costs are fixed, efficient operations act as a core factor to determine the profitability of airlines companies. The basic operations of airlines include acquiring and maintaining airplanes and airport facilities, acquiring passengers and/or freight, managing staff, and operating flights. The flight equipment (airplanes) that an airline uses is crucial to efficient operations. The next key survival factor for airline industry is safety. Air traffic is growing rapidly, airports are more...
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. .
"Competitive Environment of the Airline Industry." Competitive Environment of the Airline Industry. Web. 16 Feb. 2015. .
"Good times for the Airline Industry." The Economist. The Economist Newspaper, 27 Dec. 2013. Web. 16 Feb. 2015. .
Fulton, Jeff. "Airline Industry Key Success Factors." EHow. Demand Media, 29 July 2009. Web. 16 Feb. 2015. .
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