The Airline Industry

1093 Words5 Pages
According to ATAG, “in 2013, over three billion passengers were carried by the world’s airlines” (Facts & Figures, 2014). This fact demonstrates how the airline industry is a ubiquitous part of our lives. Even if a person has never used an airline for personal transportation, they are still likely to have consumed and/or used an assortment of goods transported by the industry. Still, even with its major impact on the world around it, inside the airline industry, firms must learn to encounter a wide array of external factors that influence their everyday operations and strategies. These factors can come from both the general and local environments that surround the industry. Each of these factors in their own way have an impact on the competitive environment found within the industry. GENERAL ENVIRONMENT The general environment consists of six different trends that can have an effect on the strategies a firm must take to survive in its industry. These six trends are: technological, demographic, cultural, economic, legal and political, and international (Barney & Hesterly, 2016). In the airline industry, this means things such as fuel price, terroristic threats, and the environmental impact, all of which affect a firm’s strategy choice. Demographic As depicted in Chart A in the appendix, disposable income has experienced an overall increase over the past 10 years (United States Disposable Personal Income, 2015). This means that individuals have more income to spend
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