Threat of new entrants airline industry code#

A number of mergers of large airlines have occurred over the past decade. However, horizontal integration has been very evident. There is virtually no vertical integration in the airlines industry. Michael Porter developed a model for analyzing the influence of industry context on competition. Rivalry can best be understood within the context of an industry. The structure of an industry can have a profound effect on the level of profitability that can be sustained. Reservations, and the provision of training, servicing, and maintenance, account for the remaining revenue generated in the airlines industry ('Airline Industry,' 2011). About 70% of revenue comes from domestic flights and approximately 20% comes from international flights. The ten largest companies earn more than 75% of the revenue for the industry ('Airline Industry,' 2011). In addition, there are a number of express delivery companies, such as UPS, FedEx, and DHL. The major airlines include United Continental, American (which is owned by AMR) and Delta ('Airline Industry,' 2011). Southwest Airlines competes with about 600 companies across the domestic airline industry ('Airline Industry,' 2011). The Charter and Other Nonscheduled Air Transportation category includes those companies providing nonscheduled transportation.

Threat of new entrants airline industry code#

The NAICS code is 4811, which includes all companies providing scheduled air transportation of passengers and cargo. The unit of analysis for this paper is the company level for Southwest Airlines.

Finally, a SWOT analysis will be generated for Southwest Airlines against the background of the macro level and the micro level analyses. The external analysis at the macro level will be accomplished by analyzing the PEST filters at the micro-environment level. The treatment will follow a tiered approach that examines the macro-environment, the micro-environment, and - to some degree - the internal environment. This deductive exploration of the landscape will continue at the micro level through application of Porter's five forces framework. This paper will present a brief analysis of the competitive landscape for Southwest Airlines based in order to assess the airline's future capabilities in an environment in which other airlines are increasingly co-opting Southwest's successful and innovative strategies. The report concludes that Southwest has gained ground and maintained stability, changing only as much as it needed in order to remain the friendly domestic budget airline it started out as, and to compete effectively but with fidelity to its vision and values. The review was conducted through application of Porter's Five Forces, a PEAT analysis, and a SWOT analysis. Will Southwest Airline's strategic plan continue to bring success in the new airline industry landscape? This paper sought to answer this question by examining the external increasingly consolidated environment in which Southwest competes.