A popular low-cost airline, Budget Airways, has gone out of business. Although the service and price provided by the airline was what customers wanted, the larger airlines were able to drive the low-cost airline out of business through an aggressive price war. Which component of the competitive environment does this illustrate?

Question

Quizplus · Accepted Answer

This scenario illustrates the impact of competitors, as larger airlines engaged in aggressive price competition to drive Budget Airways out of business.

A Popular Low-Cost Airline, Budget Airways, Has Gone Out of Business