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Strategy And Case Analysis : United States Airline Industry

Jan 28,22

Strategy And Case Analysis : United States Airline Industry

Question:

Describe about the Strategy and Case Analysis for United States Airline Industry.

Answer:

Introduction

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Table of Contents

Introduction. 2

The strategic operations regarding the marketing of the US airline industry. 2

Case analysis for the US airline sector 4

Conclusion. 6

Reference list 7

Introduction

The United States has the busiest airline industry to provide appropriate services to airline passengers. It is known that the UK is the most developed country in today’s era with a massive economy and job opportunities. Across the world, most of today’s millennial are eager to find a job and placement in UK based industries. Thus, the airline is the most important sector to bring outside students and employees to the US. Apart from this, it is also known that most of the business industries are based in the US. Due to the massive requirements and business concerns industrial stakeholders and global investors also need to join the meetings with US clients. Thus, it is the most crucial industry in the US with the most vital duties and responsibilities.

The strategic operations regarding the marketing of the US airline industry

Before the pandemic period in 2019, the US airlines transported up to nine thousand thirty million passengers from all over the world. The recent practising method of US airline industries indicates its sustainable growth level (Ciliberto, Watkins & Williams, 2019).

Figure 1: Revenue graph of sustainable growth of US airline industries

Source: (Statista, 2022)

The threat of new entrants: The above graph is showing that after 2019 the US airline industry got a massive economical loss. The US is always obsessed with using the most advanced technological tools in its air vehicles. Thus it provided proper comforts and facilities to its passengers. Managing the airline operations with appropriate tools is required (Alan & Lapré, 2018). Throughout the period of services, the US-based airlines’ industries maintain their service qualities with strategic tools. It has been explored that due to massive industrialisation and modernisation most of the developed and developing countries are computing the airline industry to the US airline industry. According to the share rate of the domestic market, Southwest Airlines is one of the closest competitors of the US. After implementing the strategic and advanced technologies the Southwest airlines develops its service-related areas.

Threats of substitutes: The recent pandemic situation has become one of the vital threats to the airline industry of the US. Due to the massive repatriations and limits regarding transporting airline passengers the US airline industry is gaping through massive losses. Approximately 11 million citizens are directly connected with the US airline industry. Most of the crucial and vital actions are provided by the airline industry of the US. The airline industry of the US needs to modify their network structure to meet the goal in the global market (Ciliberto, Cook & Williams, 2019). The airline industry is one of the most mature firms with highly efficient technologies across the world. In order to analyse the marketing segmentation of US-based airline industries porter’s five forces analysis has been done in the below section.

Bargaining power of buyers: This secretion indicates the strategic operations by the stakeholders of the US airlines industry. These stakeholders are the business investors, passengers and the employees connected with the US airline industry. The bargaining power of the global industrial clients is very high. It can be claimed that the employees such as pilots, air hostages are the costly stakeholders in the US airline industry.

Bargaining power of suppliers: The suppliers of the US airline industry are the fuel suppliers and the craft model manufacturers. The bargaining power of these stakeholders is very high in the US. Thus, it can be claimed that the US airline industry is the most costly industry across the world. Increasing influential practices for regarding client’s mindset and issues is important for the US airline industries (Lewis, 2020). The opportunities regarding jobs and services by US airlines industries are private to the good talent candidates. Thus, the progressive result has been achieved by the US-based airline industries to its clients and passengers.

Rivalry among existing competitors: Due to the massive demand and requirement, it has been explored, the US airline is the most vital sector that needs to adopt more tactical strategies for regulating its operations. In today’s competitive era many citizens from various countries found jobs in the United States. Thus, exams and interviews must be provided to the US industries or organisations. After the pandemic situation, it has been that some of the education and business purpose works are being done through online platforms.

Case analysis for the US airline sector

In order to analyse the cases regarding the challenges and complexities which are currently faced by the airline industry in the US, it is important to develop business ideas. The case has been identified regarding the recent hazardous situation in the US airlines industry. After the covid pandemic, it has been seen that the US industry is going through a low economical source. Using sustainable metals and tools in the manufacturing sector of US-based air vehicle products is required. The massive operations regarding transporting passengers have become a headache. Due to the several restrictions, it has become the most prioritised responsiblity to regulate the further spread of coronavirus among the passengers.

Figure 2: The market share related pie chart of US airline industry

Source: (Granthaalayahpublication, 2022)

Market competitiveness: The above pie chart is describing the competitiveness among the rival airline industries. The worldwide business industries from various countries are growing with their strategic actions. In today’s competitive market the US airline industry is now facing massive compilations. The compilation is not only among the various country-based international airlines organisations. This competition involves fighter aircraft manufacturing companies from Korea and Japan. Apart from these, it has been also explored that regulating the airline industries indicate controlling public airline vehicles with military purpose aircraft. Also a little bit of influential implementation is required in grading the public airline transactions system. Schedule planning regarding transportation operations needs to be modified by Us based airline industries to avoid any air traffic-related issues. Gratitude to the passengers by the air hostess and also maintains the social restrictions to avoid further health aggrading worldwide complexities needs to be focused.

Modification of technologies: It is important to implement strategic technical tools to regulate the internal services of the US-based industrial industries. America always focuses on improving its fighter planes as well as it should be concerned regarding its public transportation airline sector. After the covid pandemic, it has been seen that most of the passengers are avoiding unnecessary travel via airlines. This is one of the good aspects of the high awareness among the citizens. On the other hand, it shows the less effort by the US-based airlines’ industries. The increasing fuel oil prices after the pandemic disaster reduces the capability of US airline industries to control the financial sources (Kang et al., 2021). This matter should be focused on by the US airlines industries to develop their economical sources.

Conclusion

After analysing the entire study it can be concluded that the US airline industry can improve its economical sources after implementing sustainable services by its airline workers. The immolation of high efficient technical tools can regulate the mindset of the passengers with influential facilities. It has been explored that the market competition is possible to deal with by the US airline industries through understanding the requirement of efficient employees and workers.

Reference list

Alan, Y., & Lapré, M. A. (2018). Investigating operational predictors of future financial distress in the US airline industry. Production and Operations Management, 27(4), 734-755. Retrieved from: https://cdn.vanderbilt.edu/vu-web/owen/files/publication-fullpdf-1281-Alanetal2018ProductionandOperationsManagement-20190809102611.pdf

Ciliberto, F., Cook, E. E., & Williams, J. W. (2019). Network structure and consolidation in the US airline industry, 1990–2015. Review of Industrial Organization, 54(1), 3-36. Retrieved from: https://mpra.ub.uni-muenchen.de/83885/1/MPRA_paper_83885.pdf

Ciliberto, F., Watkins, E., & Williams, J. W. (2019). Collusive pricing patterns in the US airline industry. International Journal of Industrial Organization, 62, 136-157. DOI: https://doi.org/10.1016/j.ijindorg.2018.07.008

Granthaalayahpublication. (2022). Granthaalayahpublication.org. Retrieved 17 January 2022, from https://www.granthaalayahpublication.org/journals-html-galley/13_IJRG20_B07_3548.html.

Kang, W., de Gracia, F. P., & Ratti, R. A. (2021). Economic uncertainty, oil prices, hedging and US stock returns of the airline industry. The North American Journal of Economics and Finance, 57, 101388. DOI: https://doi.org/10.1016/j.najef.2021.101388

Lewis, M. S. (2020). On the absence of directional price discrimination in the US airline industry. The Journal of Industrial Economics, 68(3), 556-581. Retrieved from: https://mslewis.people.clemson.edu/Research/Lewis_directional_discrimination_final_circulation.pdf

Statista. (2022). Total operating revenues of the U.S. airline industry 2004-2020 | Statista. Statista. Retrieved 17 January 2022, from https://www.statista.com/statistics/197680/total-operating-revenues-in-us-airline-industry-since-2004/.