Industry into meaningful groups, performance and operating statisticsĬan be separated and analyzed more effectively.
We can identify three or four similar groups rather than having toĬharacterize each firm separately. Psychologically to understand the competitive dynamics of an industry if Identifying strategic groups within an industry is highly desirableįrom both a qualitative and quantitative perspective. Similar competitive approaches and positions within the market.(4) Well-established competitive strategy model of Michael Porter.(3)Īccording to Porter, a strategic group consists of rival firms with
Specifically, this article seeks to identify Take a snapshot of the relative competitive positions of the nine major That began 1994.(2) While future change in the industry is likely, theĬomparative stability during recent years provides an opportunity to Since 1991, the industry seems to have found at least a temporaryĮquilibrium the nine largest airlines in 1991 were the same as those Asĭocumented by Rakowski and Bejou (1992), of the fifteen largest U.S.Īirline firms in 1985, six didn't make it to 1989, and in theįollowing two years another three ceased operations.(1) In contrast, OtherĪirlines such as People Express and Midway became highly publicized success stories and then took a financial nosedive into oblivion. Including Pan Am, Eastern, Western, and Piedmont have disappeared. airline industry: an application of the Porter model. APA style: Identifying strategic groups in the U.S.airline industry: an application of the Porter model." Retrieved from 1995 American Society of Transportation and Logistics, Inc. airline industry: an application of the Porter model." The Free Library. MLA style: "Identifying strategic groups in the U.S.