Question

While implementing strategic group mapping for the U. S. domestic airline industry, two strategic groups become apparent: low-cost, point-to-point airlines (Virgin Atlantic, Alaska Airlines, JetBlue, and Southwest Airlines) versus differentiated airlines using a hub-and-spoke system (American, Delta, and United). Which of the following statements is true about these two strategic groups?A. Competitive rivalry between Virgin Atlantic and JetBlue is likely to be higher than that between American and Southwest airlines.

B. American, United, and Delta airlines will be affected differently by Porter’s five competitive forces.
C. Alaska Airlines and Delta airlines will be affected by the external environment in very similar ways.
D. Competitive rivalry between Virgin Atlantic and Delta airlines is likely to be higher than that between American, Delta, and United.

Answer 1

A

Step-by-step explanation:

Based on the scenario being described within the question it can be said that the statement that is true about these groups is that competitive rivalry between Virgin Atlantic and JetBlue is likely to be higher than that between American and Southwest airlines. Mainly due to the fact that companies using the same systems and strategies will always have a greater competition as opposed to those using different strategies.