Writing Assignment U.S. Airline Industry. Business & Marketing Essay

U.S. Airline Industry
Author’s Name
Institutional Affiliation
U.S. Airline Industry
Introduction
The U.S. pertains to have an extensive transportation network. Due to this, there are many critical stakeholders in the internal and external environment that highly affects the profit ratio of the U.S. Airline Industry (Alan & Lapré, 2018). The paper uncovers the two such critical stakeholders: Technological factor and Economical factor. Although, the other stakeholders influence the profitability of the U.S. Airline industry, technological and economic factors are more to be deal with.
External Stakeholders
Technological Factor
As the use of technology in aviation is getting increased with time, it has resulted in both i.e., positive and negative effects (Rothaermel, 2017). There is no doubt that the rapid development in technology has helped the U.S. airline industry to grow and opt for new changes (Alan & Lapré, 2018). The technological advancements have helped the U.S. airline industry to fulfil customer needs and meet the desired goals and objectives. However, technology has also increased competition within the industry. Although, the new aircraft have become more fuel-efficient which helps the U.S. airline industry to reduce travel costs, however, it demands a high need for the rest of the organizations in this industry to opt for these technological advancements. Claussen Essling & Peukert (2018) alludes that as the technology has provided ease and comes with benefits, it also demands the U.S. airline industry to take necessary measures to remain aligned with the technology. In a nutshell, it can simply be assumed that if the U.S. airline industry lacks in new technology, it will undoubtedly affect financial performance.
Economical Factor
Considering the U.S. airline industry, the economic factor has a major impact. It must be considered that the U.S. airline industry is not immune to economic pressure. The industry has been observed to sustain changes with time due to the change in economic conditions. The economic factor for the industry highly depends on GDP growth, currency exchange rate, and oil price (Goetz & Sutton, 2017). If there is seen a disproportionate increase in prices with no growth in wealth of the U.S., it will result in an increased cost of flying. Due to this, it may directly hit the targe...