US Airline Industry Essay Example | Topics and Well Written Essays - 2250 words

US Airline Industry - Essay ExampleIn this paper, the proponent tries to critically evaluate the US Airline Industry using the key frameworks of International business. ruminator Analysis The US Airline Industry substantially needs a macro-environmental epitome from time to time. The bray analysis could sufficiently provide macro-environmental understanding of the business environment of this industry. As a macro-environmental analysis, the PESTLE analysis is composed of important factors such as politics, stinting, social, technological, legal and environmental which take the capacity to affect and wangle business at a significant take aim (Haberberg and Rieple, 2008). Politics The US Airline Industry be languishs to a highly policy-making scenario. The very proof was the revolution from regulation to deregulation scenario in the industry. It is highly political in the sense that competitors are trying to influence the governments decision in holy order to come up with their competitive advantage in the industry. Competition was a central focus in this case because the industry is substantially composed of varying investors who would want to try to reach specific level of competitive advantage. However, the governments political power also has important implication on the preponderant US Airline Industry. ... and price-sensitive customers, based on the case, poor economic condition of the country substantially affects the rife status of the US Airline Industry. This resulted to poor achievement of profit inside the industry. Deregulation resulted to the formation of many another(prenominal) airlines which also finally end up with overcapacity and eventually net losses for the industry (Vasigh et al., 2008). However, economic downturns have proven effective contributing factor that substantially affect the lucrativeness of the US Airline Industry. In 1990s the US experienced downturn and this was further aggravated by political uncertainty delinque nt to the Gulf War and surging fuel costs (Vasigh et al., 2008). This resulted to poor economic performance within the US Airline Industry. In 2008 to 2009, passenger volumes around the globe dropped as an upshot of the economic crisis associated in these old age (Rosenberg, 2010). This substantially proves that the US Airline Industry could be highly affected by the prevailing economic condition of the country and it could be severely hurt at some point for as long as the financial stability of passengers is concerned. Social Another important factor affecting poor gainfulness within the US Airline Industry is the existence of price-sensitive customers. However, this can only be just among of the major drawbacks of other important factors such as economic in particular. It is also important to understand profitability within the context of social understanding and the prevailing status of the US Airline Industry within individual organization. The US Airline Industry is one of t he highly unionized industries in the US with much than 70% eligible employees of major airlines belonging to union (Belobaba et al., 2009). This has substantial implication