While Implementing Strategic Group Mapping for the U

question 76

Multiple Choice

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.

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Definitions:

Timeliness

The degree to which information, actions, or events occur at a suitable or opportune time, particularly in contexts requiring promptness.

Interest Expense

The amount of interest payable on any borrowed funds.

Notes Payable

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Interest Payable

A liability account shown on a company’s balance sheet which represents the amount of interest expense that has accrued but has not been paid as of the balance sheet date.