Week Three Individual Assignment

Classic Airlines is a company in the airline industry with over 25 years of experience. The firm has an operation that includes 2300 daily flights across 240 cities. The firm has a global workforce of 30,000 employees. Due to the size of the company it is imperative for this firm to invest its marketing dollars well. The airline industry is an oligopoly. Oligopolies are characterized by having a limited numbers of participants in a market structure that has a medium level of price elasticity. Since there are few competitors companies tend to react to changes in prices of other airlines. The airline industry has been in a cost savings mode for several years. Since 2002 the number of people working in the airline industry has been reduced by over 150,000 workers (Plunkett Research, 2011).