Write an industry analysis on the airline industry, two pages of comprehensive analysis on a specific firm named “Alaska Air Group”. The analysis has to include an introduction about the airline industry, the questions need to be answered in the intro paragraph should be concerned with “how big is the airline industry?” “How mature and industry gross margin?” Next, the analysis has to include what is the value chain of an airline? and “The Porter’s Five Forces Analysis” about Alaska Air Group, the forces are Threat of New Entrants, Bargaining Power of Suppliers, Bargain power of buyers, the threat of substitute products or services, and Rivalry among existing firm.
On each force, you need to provide evidence to determine whether they have a strong power or weak power on the specific force, then explain how Alaska Air Group can tackle the problems on Threat of new entrants(is the threat of entry is high due to capital requirements?), bargaining power of suppliers(who are the suppliers? Has the supplier group has built up switching costs for Alaska Airlines? Is the supplier group’s products are differentiated or cannot be easily substituted? Ex. Jet fuel supplier, Boeing, Airbus), bargaining power of buyers(Weak? Strong? does buyer faces switching costs? Large volumes purchase? Differentiated or undifferentiated?), Threat of substitute products and rivalry among existing firms(Is the competition leads gravity to price?).

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