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Airline Industry Analysis

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I need help answering the following assignment. See attached article.
1. Discuss the structural characteristics of the airline industry from the point of view of the Porter Five Forces framework.
2. Discuss the United-Continental merger from the perspective of the Acquisition Integration Approaches framework.
3. Discuss the United-Continental merger from the perspective of the Competitive Advantage (Porter) framework.

Thank you.

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Here is the general direction I would go with each question:

1. The Porter's model is based on five components: supplier power, buyer power, competitive rivalry, substitution threats, and new entrant threats. From the standpoint of a structural characteristics framework, we can see where the emphasis for each component of the framework would be on the size of the industry. The airline industry is one of the largest industries in the world, and that's because of the nature of the trade and also because of the size of assets (planes, airports, etc.) required in the trade. Structurally, this gives the industries power to a great extent over suppliers assuming that there are no substitute suppliers to an excess number. Because the industry has a large amount of working capital (i.e. cash) to work with, the power remains with the industry. If the airlines aren't satisfied, they can simply seek out a competing supplier. Suppliers can drive prices up, but the airline industry also has the power to drive prices down ...

Solution Summary

This solution provides a thorough discussion on the United-Continental merger using the Five Forces Framework, the Acquisition Integration Approaches framework, and the Competitive Advantage (Porter) framework.

Similar Posting

Organizational Behavior: Airline industry analysis

This report is related to the comparison and contrasting of organizational behavior function of Southwest Airline with Qantas and American Airlines. Firstly, the report explains about the companies Southwest Airline, Qantas Airline and American Airlines. After this, the report discusses about the comparison and contrasting of various functions of organizational behavior. These functions are Company leadership, Job Satisfaction, Employee Motivation and Negotiation between management and employees.

This paper discusses importance of these functions to improve the productivity and performance of the company in the highly unpredictable and changing environment. In order to become successful in the industry, and create competitive advantage over the competitors, it is necessary for the firm to develop a positive corporate culture and effective leadership process for the employees to influence their behavior towards job and company in a positive way.

This report also presents some tabular and graphical analysis to show the performance of the companies and impact of these OB concepts in the productivity and profitability.

Table of Contents
Executive Summary 4
Introduction 5
Companies Overview 5
Southwest Airline: 5
Qantas Airlines: 6
American Airlines: 7
Comparison and Contrasting of Different Functions of Organizational Behaviors of these Airlines 8
Company Leadership: 8
Leadership in Southwest Airline: 8
Leadership in Qantas Airline: 9
Leadership in American Airline: 10
Similarities: 10
Differences: 11
Job Satisfaction: 11
Job Satisfaction in Employee in Southwest Airlines: 11
Job Satisfaction in Qantas Airline: 12
Job Satisfaction in American Airline: 13
Similarities: 13
Differences: 13
Employee Motivation: 14
Employee Motivation in Southwest Airline: 14
Employee Motivation in Qantas Airline: 14
Employee Motivation in America Airline: 15
Similarities: 15
Differences: 16
Negotiation between Management and Employees: 16
Negotiation in Southwest Airline: 16
Negotiation in Qantas Airline: 16
Negotiation in American Airline: 17
Similarities: 17
Differences: 17
Conclusion 17
References 19
Appendix 22
Appendix 1: Key Financials of Southwest Airline: 22
Appendix 2: Key Financials of Qantas Airline: 22
Appendix 3: Key Financials of American Airline: 23
Performance Graphs 24
Graph 1: Revenues and Profitability of Southwest Airlines: 24
All data and information about Appendixes and Graphs has been taken from reports of Datamonitor. 24
Graph 2: Revenues and Profitability of Qantas: 25
Graph 3: Revenues and Profitability of American Airlines: 26

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