Question 1


For this industry, the Threat of New Entrants is



For this industry, the Threat of New Entrants is





likely to be a strong threat due to high barriers to entry



likely to be a strong threat due to high barriers to entry



not likely to be a strong threat due to the ability of firms to rapidly duplicate the technology of the various airlines



not likely to be a strong threat due to the ability of firms to rapidly duplicate the technology of the various airlines



likely to be a strong threat due to the ability of other firms providing transportation such as Greyhound to begin providing air transportation



likely to be a strong threat due to the ability of other firms providing transportation such as Greyhound to begin providing air transportation



not likely to be a strong threat on a world-wide basis due to the high barriers to entry



not likely to be a strong threat on a world-wide basis due to the high barriers to entry





Question 2



Question 2



For this industry, the Threat of Substitute Products is



For this industry, the Threat of Substitute Products is





likely to be a strong threat due to the fact that one airline can easily be substituted for another by consumers



likely to be a strong threat due to the fact that one airline can easily be substituted for another by consumers



likely to be a strong threat due to the fact there are not very good substitutes available for airline transportation



likely to be a strong threat due to the fact there are not very good substitutes available for airline transportation



not likely to be a strong threat due to the fact that there are very good substitutes available for airline transportation



not likely to be a strong threat due to the fact that there are very good substitutes available for airline transportation



not likely to be a strong threat due to the fact that there are not very good substitutes available for airline transportation in many instances



not likely to be a strong threat due to the fact that there are not very good substitutes available for airline transportation in many instances





Question 3



Question 3



For this industry, the Rivalry among Existing Firms is



For this industry, the Rivalry among Existing Firms is





very strong due to the strong competition between firms such as Boeing, Airbus, etc..



very strong due to the strong competition between firms such as Boeing, Airbus, etc..



weak due to the fact that the airline industry is presently growing extremely rapidly



weak due to the fact that the airline industry is presently growing extremely rapidly



very strong due to the strong competition between firms such as Delta, Southwest Airlines, American, etc. and slow growth, and high fixed costs



very strong due to the strong competition between firms such as Delta, Southwest Airlines, American, etc. and slow growth, and high fixed costs



weak due to the fact industry is basically saturated



weak due to the fact industry is basically saturated





Question 4



Question 4



For this industry, the Bargaining Power of Customers,



For this industry, the Bargaining Power of Customers,





is strong due to the fact that no one customer buys a large number of airline tickets



is strong due to the fact that no one customer buys a large number of airline tickets



could include customers that are re-sellers of tickets as well as customers that are end users of tickets



could include customers that are re-sellers of tickets as well as customers that are end users of tickets



is weak due to the fact that most customers buy a large number of tickets each year



is weak due to the fact that most customers buy a large number of tickets each year



is strong due to the fact that there are a small number of tickets sold in a single year



is strong due to the fact that there are a small number of tickets sold in a single year





Question 5



Question 5



For this industry, the Bargaining Power of Suppliers,



For this industry, the Bargaining Power of Suppliers,





is probably of medium strength due to a mixture of power among the various suppliers to the airline industry



is probably strong since aircraft are now basically commodities



is probably strong since aircraft are now basically commodities



is probably weak since there are very few sources of aircraft



is probably weak since there are very few sources of aircraft



is probably strong due to the rivalry between airlines



is probably strong due to the rivalry between airlines





Question 6



Question 6



Which of the following could be considered an opportunity for Delta Airlines?



Which of the following could be considered an opportunity for Delta Airlines?





Excellent research and development department



Excellent research and development department



Excellent advertising effectiveness



Excellent advertising effectiveness



Increasing vacation travel to southern states, particularly Florida



Increasing vacation travel to southern states, particularly Florida



Top management has many years of experience



Top management has many years of experience



Effective marketing segmentation



Effective marketing segmentation





Question 7



Question 7



Delta Airline’s competitive strategy can be best-described as:



Delta Airline’s competitive strategy can be best-described as:





differentiation focus



differentiation focus



differentiation



differentiation



concentric diversification



concentric diversification



cost leadership



cost leadership



cost focus



cost focus





Question 8



Question 8



Would physical resources or people-based resources be more likely to be the source of



Would physical resources or people-based resources be more likely to be the source of



a sustainable competitive advantage at Delta Airlines?



a sustainable competitive advantage at Delta Airlines?





people-based resources



people-based resources



physical resources



physical resources



both are equally likely



both are equally likely



Question 9



Question 9



In the airline industry, frequent-flyer programs, ticket kiosks, and e-ticketing are all examples of capabilities that are



In the airline industry, frequent-flyer programs, ticket kiosks, and e-ticketing are all examples of capabilities that are





rare.



rare.



causally ambiguous.



causally ambiguous.



socially complex.



socially complex.



valuable.



valuable.





Question 10



Question 10



Which of the following is a strength of Delta?



Which of the following is a strength of Delta?





It is the third largest passenger carrier in the world in terms of revenue.



It is the third largest passenger carrier in the world in terms of revenue.



It has a productivity advantage among legacy carriers.



It has a productivity advantage among legacy carriers.



Business travelers are far less price sensitive than leisure travelers.



Business travelers are far less price sensitive than leisure travelers.



a and b only



a and b only



All of the above



All of the above





Question 11



Question 11



Which of the following is a strength of Southwest?



Which of the following is a strength of Southwest?





Its 27-minute turn time.



Its 27-minute turn time.



Its profit margin (income per available seat mile).



Its profit margin (income per available seat mile).



Its load factor.



Its load factor.



a and b only.



a and b only.



All of the above.



All of the above.





Question 12



Question 12



Which of the following is a weakness of Delta?



Which of the following is a weakness of Delta?





Employee compensation.



Employee compensation.



Global economic slowdown.



Global economic slowdown.



Possibility of terrorist attacks.



Possibility of terrorist attacks.



a and b only.



a and b only.



All of the above.



All of the above.





Question 13



Question 13



Widespread access to airline fares and schedules via Internet reservation systems has effectively __________ and __________.



Widespread access to airline fares and schedules via Internet reservation systems has effectively __________ and __________.





increased the bargaining power of buyers; increased industry rivalry.



increased the bargaining power of buyers; increased industry rivalry.



increased the bargaining power of buyers; decreased industry rivalry.



increased the bargaining power of buyers; decreased industry rivalry.



decreased the bargaining power of buyers; decreased industry rivalry.



decreased the bargaining power of buyers; decreased industry rivalry.



decreased the bargaining power of buyers; increased industry rivalry.



decreased the bargaining power of buyers; increased industry rivalry.



None of the above



None of the above





Question 14



Question 14



According to the Porter’s Five Forces Model which of the followings impacted the intensity of rivalry in the airline industry?



According to the Porter’s Five Forces Model which of the followings impacted the intensity of rivalry in the airline industry?





Slow industry growth, high fixed costs and high strategic stakes



Slow industry growth, high fixed costs and high strategic stakes



Numerous and equally balanced competitors and the threat of substitutes



Numerous and equally balanced competitors and the threat of substitutes



Fuel suppliers, high exit barriers and high strategic stakes



Fuel suppliers, high exit barriers and high strategic stakes



Bargaining power of buyers, numerous and equally balanced competitors.





Question 15



Question 15



JetBlue has contradicted the general opinion that:



JetBlue has contradicted the general opinion that:





barriers to entry in the airline industry are too high to allow new competitors to be successful.



barriers to entry in the airline industry are too high to allow new competitors to be successful.



switching costs are too high for a new competitor to be successful



switching costs are too high for a new competitor to be successful



product/service substitutes are not viable in the airline industry.



product/service substitutes are not viable in the airline industry.



the high strategic stakes of international competitors would be too fierce to allow success for a new U.S. entrant.



the high strategic stakes of international competitors would be too fierce to allow success for a new U.S. entrant.





Question 16



Question 16



Which segment in the external environment influences airline industry the least?



Which segment in the external environment influences airline industry the least?





Economic segment



Economic segment



Technological segment



Technological segment



Legal/political segment



Legal/political segment



Demographic segment



Demographic segment





Question 17



Question 17



The environmental segments of the airline industry that comprise the general environment typically will NOT include:



The environmental segments of the airline industry that comprise the general environment typically will NOT include:





demographic factors.



demographic factors.



sociocultural factors.



sociocultural factors.



substitute products/services.



substitute products/services.



technological factors



technological factors





Question 18



Question 18



What is the strategy of Southwest?



What is the strategy of Southwest?





Low Cost



Low Cost



Focused



Focused



Low cost/focused



Low cost/focused



Low cost/differentiation



Low cost/differentiation



Focused/differentiation



Focused/differentiation





Question 19



Question 19



Which of the following is a primary value chain activity for Delta?



Which of the following is a primary value chain activity for Delta?





Technology development



Technology development



Operations



Operations



Employee salaries



Procurement



Procurement



Human Resources



Human Resources





Question 20



Question 20



One of Southwest Airlines’ competitive advantages is highly difficult for competitors to imitate. This is their:



One of Southwest Airlines’ competitive advantages is highly difficult for competitors to imitate. This is their:





advanced reservation processing technology.



advanced reservation processing technology.



deep market penetration.



deep market penetration.



organizational culture.



organizational culture.



research and development.



research and development.