Unformatted text preview: anything lower. Rivalry “American faces operational challenges as well.” This quote shows that American Airlines did not go into bankruptcy and merge with anyone they are the ones that now have financial problems and there pilots are still getting paid a 1993 wage which is much lower than any other airline. There is also low differentiation between AA and its competitors so its rivalry is very high. American is trying its hardest to make sure that they are different and the best option for its customers. Supplier The supplier threat is low because of the fact that the supplies purchased by AA have no chance of integrating into the focal industry. Another reason the threat is low is because of the amount of substitutes that American Airlines can purchase from....
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This note was uploaded on 04/27/2011 for the course BUSINESS 302 taught by Professor Rodriguez during the Winter '09 term at California State University , Monterey Bay.
- Winter '09