
While implementing strategic group mapping for the U.S. domestic airline industry, two strategic groups become apparent: low-cost, point-to-point airlines (Virgin Atlantic, Alaska Airlines, JetBlue, and Southwest Airlines) versus differentiated airlines using a hub-and-spoke system (American, Delta, and United) . Which of the following statements is true about these two strategic groups?
A) Competitive rivalry between Virgin Atlantic and JetBlue is likely to be higher than that between American and Southwest Airlines.
B) American, United, and Delta Airlines will be affected differently by Porter's five competitive forces.
C) Alaska Airlines and Delta Airlines will be affected by the external environment in very similar ways.
D) Competitive rivalry between Virgin Atlantic and Delta Airlines is likely to be higher than that between American, Delta, and United.
Correct Answer:
Verified
Q87: Zoom Zoom Car Rental follows a cost-leadership
Q88: What is a natural monopoly? Provide a
Q89: Addams Coaches Inc. is a bus line
Q90: How is a firm's task environment different
Q91: How do scholars explain differences in firm
Q93: What is the drawback of the five
Q94: Defend or refute the statement: "Strategic groups
Q95: In regard to any of the five
Q96: Describe the relationship between the state of
Q97: What is meant by industry convergence? Explain
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents