A popular low-cost airline, Sky Cruiser, 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 aspect of the competitive environment does this illustrate?

Question

Quizplus · Accepted Answer

The competitive environment consists of rivalry among existing competitors and the threat of new entrants, the threat of substitute and complementary products, and the bargaining power of suppliers and buyers.

A Popular Low-Cost Airline, Sky Cruiser, Has Gone Out of Business