Essay QuestionsA.Choose a specific industry (e.g., grocery retailing, the airline industry, etc.), and apply Porter's Five Forces Model to discuss that industry's competitive forces and their relative influence.
B.Discuss how online marketing could provide competitive advantages in the industry you analyzed in question A.
C.Do you think firms that market products for children have any special ethical responsibilities when they advertise? Why or why not? Give examples that support your position.
Question AAccording to Wikipedia's "Airline" entry, the airline industry in the United States has been in existence since 1914. In that time, many airlines have come and gone from the market. TWA's historical website flytwa.com indicates that the first flight under the TWA code was on 1 October 1930, and that TWA filed for Chapter 11 bankruptcy protection on 10 January 2001. Pan Am's historical website panam.org says that Pan Am flew from 1927 to 1991. There are many airlines, however, that have lasted since their inception, such as Delta, American Airlines, and some newer low-cost carriers like JetBlue and Southwest.
When looking at Porter's Five Forces Model and applying it to the airline industry, the biggest competitive influence is the threat of substitutes. Many of the larger airlines all fly to the same destinations, and the only difference between the airlines is price and schedule. If one were to fly from JFK to Boston on Delta, leaving 13 February 2009 at 7:15 p.m., and returning 15 February 2009 at 6 p.m., it would cost $309. However, if one were to take a comparable trip on JetBlue (leaving JFK at 7:25 p.m. on Friday and leaving Boston at 5:27 p.m. on Sunday), it would cost $219. Both travel plans were obtained using the respective airlines' websites. Typically, unless a buyer has a distinct preference for a certain airline, they...