The 5 Forces of the US Airline Industry

At this point in the semester, you should be familiar with the details of the Five Forces model. Please use this model to analyze the current US airline industry from the perspective of an airline carrier (such as Southwest or American Airlines). Please be sure to provide ample detail for each conclusion you reach. For example, rather than just stating that the barriers to entry are high in this industry, specify the conditions that make them high (level of capital investment, etc.). In other words, “show, don’t tell.” Then, based on your analysis, state whether you feel a new airline is a worthy investment at this time.

This assignment should be 3-4 pages long with typical formatting. It should not exceed 5 pages. Note, this page limitation does not include your Works Cited page.

Also, make sure to treat this as a formal writing assignment. Careful proofreading and a professional tone are mandatory. Remember, grammatical mistakes will detract from your grade!

To help you in this assignment, I have provided you with two links. The first link contains a rudimentary 5-Forces analysis. Please realize that such an analysis is insufficient for this class and you must provide greater detail if you expect to receive a decent grade. The second link provides additional information you may find useful.

http://www.investopedia.com/features/industryhandbook/airline.asp#axzz23cyq6Qd3

http://www.investopedia.com/articles/stocks/07/airline_stocks.asp#axzz23cyq6Qd3

Do not feel that you should be confined to these two websites. You are welcome to bring in as much additional information as you feel is necessary. However, make sure to provide proper credit for other’s work. I have no preference in the style of citation that you use, as long as I have enough information to access the work if needed.

As always, feel free to contact me with any questions regarding this.