Strategy and Case Analysis

Running head: STRATEGY AND CASE ANALYSIS
Strategy and Case Analysis
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1STRATEGY AND CASE ANALYSIS
EXECUTIVE SUMMARY
The report intends to analyse the airlines industry of USA and the business market in which it
is operational. The report firstly offers an overview of the airlines industry of USA stating the
major trends and players which are there within the concerned industry. The report next
undertakes an analysis of the concerned industry on the basis of the tool of PESTLE analysis
and finds that most of the factors are suitable for the firms to conduct their business in USA.
The report also analyses the competition within the concerned industry on the basis of
Porter’s Five Forces Model and finds that the firms within the concerned industry face fierce
competition. The report also enumerates the major threats and opportunities presented by the
concerned while highlighting the major drivers for change. Lastly, the report concludes by
suggesting the use of cost leadership strategy and collaboration with the tourism industry as
the measures through which the firms related to the US airlines industry can earn a higher
amount of profitability.

2STRATEGY AND CASE ANALYSIS
Table of Contents
1.0 Introduction..........................................................................................................................3
2.0 Overview of US Airlines Industry.......................................................................................3
3.0 PESTLE Analysis.................................................................................................................5
3.1 Political Factors................................................................................................................6
3.2 Economic Factors.............................................................................................................7
3.3 Social Factors...................................................................................................................8
3.4 Technological Factors......................................................................................................8
3.5 Legal Factors....................................................................................................................8
3.6 Environmental Factors.....................................................................................................8
4.0 Competitive Forces Analysis...............................................................................................9
5.0 Opportunities and Threats..................................................................................................11
6.0 Key Drivers of Change.......................................................................................................11
7.0 Potential Strategies for Profitability...................................................................................12
8.0 Conclusion..........................................................................................................................12
9.0 References..........................................................................................................................13

3STRATEGY AND CASE ANALYSIS
1.0 Introduction
As stated by Hamilton and Webster (2018), the dynamicity of the modern business
world becomes apparent from the fact that the strategies as well as business processes which
once enabled the firms to gain success are no longer that effective in the present times.
Schmitt et al. (2016) have argued that the process of internalisation or globalisation had
significantly enhanced the competition level within the framework of the modern business
world and the firms are struggling to amend their business activities in conjunction with the
demands of the business environment of their operation. Furthermore, the firms are presently
using different kinds of tools or frameworks for the analysis of the external business
environment in which they are operational (Bazargan 2016). This is important because of the
fact that it offers insight information to the firms regarding the threats as well as the
opportunities that they face within the business market in which they are operational. This in
turn enables the firms to formulate effective strategies so as to reduce the negative effects of
threats and take adequate full advantage of the benefits or opportunities presented by the
business market. This report will undertake an analysis of the US Airlines industry on the
basis of the framework of PESTLE analysis and Porter’s Five Model and thereby suggest
potential strategies that the firms can use to enhance their profitability.
2.0 Overview of US Airlines Industry
Lange et al. (2015) have articulated the viewpoint that the airlines industry is mainly
concerned with offering air transportation services and other related services to the customers
so as to improve the quality of transportation services which are available to them. As opined
by Burghouwt (2016), the airlines industry can be categorised into three major sections,
namely, general, commercial and military. In this regard, it needs to be said that the US
Airlines industry plays a pivotal role within the framework of the concerned nation. On the
one hand, it is seen that the airlines industry of the concerned nation had greatly improved the
transportation facilities which are available to the people and on the other hand it is seen that
the concerned industry had greatly strengthened the national economy of the nation as well
(Clark 2016). For example, the gross revenue generated by the domestic airlines industry of
USA in 2018 was more than $53bn whereas the revenue generated by the international
airlines industry of USA in 2018 was $142bn (Ibisworld.com 2019). In addition to these, the
total revenue generated by the concerned industry in the year 2018 was more than $821
billion dollars which accounted for more than 11.7% of the entire GDP of USA