Part 1: Industry analysis

Part 1 of the assignment looks at the industry structure of the airline industry, and assesses the profit potential of the industry, both now and in the future. The specific questions you need to address in this part of the assignment include:  

– What does the industry structure look like?  

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– What are the strategic groups in the industry?  

– Given this, what is the overall attractiveness of the overall industry and each of the strategic groups      you identified?  

– What are the driving forces acting to change the industry? (I.e., macro-environmental analysis)  

– How are those changes likely to affect the industry and the different strategic groups in the industry?  

– If the driving forces play out as you anticipate, how will that affect the attractiveness of the industry  and its constituent strategic groups?

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