A popular low-cost airline, Parson Corp., 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

The fact that the larger airlines were able to drive the low-cost airline out of business through an aggressive price war highlights the impact of competitors in the competitive environment.

A Popular Low-Cost Airline, Parson Corp