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Explain why you think competition in the airline industry is a cost leadership or a differentiation type of competition.

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Navigating the various websites for low fares, avoiding fees for checked bags and priority seating, and finding the right flight schedule can be a real challenge for the average airline passenger. The complexity of options and sources for purchasing a ticket has expanded significantly in recent years, and the outlook for the future is likely to be more complex. This is because new search sites are becoming available and some airlines are seeking more control over where and how tickets are purchased.

According to an independent research firm, the airlines want passengers to buy tickets based on value and not on low prices; they do not want passengers to comparison shop. One major airline even announced that it wanted to deliver fare information directly to customers and bypass search systems like Expedia and Travelocity.

Explain why you think competition in the airline industry is a cost leadership or a differentiation type of competition. It should include at least one reference from relevant peer-reviewed journal articles and/or books found within the online LIRN library or other reputable sources. These must be properly cited in APA format.

196 Words  1 Pages
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