Reference no: EM132919878

Recently, in the U.S. airline industry, major airlines have gone through a series of mergers and consolidated from 8-9 players to only four major ones. Additionally, airlines now manage their available seats better, such that they aren't under pressure to sell seats at the last minute. All of this has meant fewer airline price wars, fewer airline deals for customers, and consequently more industry profits.

Problem 1: Based on this example describing changes in the airline industry, what would you conclude was the "pivotal force" in the industry?

a. Entry barriers
b. Supplier power
c. Rivalry
d. Buyer power
e. Substitutes