The primary drivers of cost

The following post has two assignments namely;

1.The primary drivers of cost

What are the primary drivers of cost (major cost areas) in the airline industry? What are the primary sources of Southwest’s cost advantage? In other words, do you believe that Southwest’s cost advantage can be best attributed to economies of scale, learning and experience, proprietary knowledge, lower-cost inputs, or a different business model? How is Jet Blue’s strategy similar to Southwest’s? How is it different? What prevents larger competitors, such as American, Delta, or United, from imitating Southwest’s approach? What prevents new entrants from successfully imitating Southwest’s approach? Using data from the Southwest case, create a chart that plots the relationship between each airline’s market share, in terms of revenue or airline seat miles flown, and its profitability for two periods: 1995-2000 and 2001-2005. Does your analysis suggest that market share is correlated with profitability in this industry? If you exclude Southwest Airlines and Jet Blue airlines from the analysis (companies that use “point-to-point” route structure rather than a “hub and spoke” route structure), how well does market share predict profitability?

2.Main features and trends in Australia’s inbound tourism market.

1. Outline the main features and trends in Australia’s inbound tourism market. 2. Explain and account for the price and income elasticities of demand in this market in both the short run and the long run. 3. Choose five different factors that could affect supply and/or demand in this market and using appropriate diagrams explain their effect on this market. 4. Describe the economic structure of the tourism industry in Australia and discuss the implications for profits in the industry in both the short run and the long run.