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  • Labor Cost
    391 words
    Changes in cost and efficiency The situation today in the airline industry is basically a price / cost war. Companies are battling to cut and keep their operating cost low in order to remain competitive in an industry that is strongly driven by price. The principal cost factors that drive the industry are labor and fuel. In terms of labor Nee leman, Jetblue's CEO, said that "The biggest problem in the industry isn't pay, its work rules". Labor cost accounts for the 38% of the overall operating c...
  • Inflation Rate
    640 words
    Inflation Has Been More Subdued Than In The 1970 S What Are The Reasons For This And Will They Endure Inflation has been more subdued than in the 1970's. What factors explain this and are they likely to endure Inflation is a sustained increase in the general price level leading to a fall in the purchasing power of money. It is caused by two major groups of factors: The demand-pull factors, when the total demand for goods and services exceeds the total supply and the cost-push factors, when firms...
  • 1 By Low Cost Airlines
    1,861 words
    Strategic Discussion on U. S Airline Industry Discussion Question 1: Use the model of the general environment (Chapter 2, Table 2.1) to evaluate the opportunities and threats facing the U.S. airline industry and Southwest Airlines in particular. What are the key opportunities and threats? The health of the overall U. S airline industry is still tenuous in-spite of the passenger traffic volumes returning to pre-9/11 levels. A survey estimated that from 2001 through 2003, the US airline industry r...
  • Toyota's Integrated Differentiated Strategy
    429 words
    Business Models one of the leading automobile manufacturers in the world, Toyota ranks within the top three worldwide. Due to their unique business model, they are now have a market share of 14% in the first four months of this year. That is an astonishing 2.3% jump from the previous year. According to Autodata. com, the Toyota City based automaker ranks fourth in United States sales. We have determined that their business model is an Integrated Low Cost - Differentiated Strategy. It involves fi...
  • Cost Through E Procurement System
    1,066 words
    Topic 4 - E-Procurement Hypothesis: Organizations can reduce cost through e-procurement system. Impacts on Business Process Gebauer, et all (1998) describes procurement as one of the most important functions for both governmental and private sector business processes. Procurement is more than just purchasing goods and services. It includes all activities involved in obtaining, transporting and moving material towards the production process. Electronic procurement makes use of electronic commerce...
  • 9 11 The Airline Industry
    1,119 words
    Porter's Five Forces Model When relating the airline industry, or more specifically Northwest Airlines, to Porter's Five Forces Model there are five forces to be examined, hence the name. First off it is good to look at the risk of entry by potential competitors. With respect to this force there is a high barrier to entry due to the high cost of capital. To be a competitor in the airline industry you must first have and airplane. Airplanes are large investments that require high mechanical maint...
  • Continuous Supply Of Low Cost
    316 words
    Some of the key characteristics of aluminium production technology are - Economies of scale: Alumina refining and aluminium smelting operations are influenced by economies of scale. The minimum economic size of an alumina refinery is around 1 mtp a, and that of a smelter unit is 250,000 tpa. Refining operations are influenced more by economies of scale, as refining is a continuous process. - High capital intensity: Alumina refining and aluminium smelting are highly capital intensive. A new refin...

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