Please write $1-2$ page answer to the discussion questions at the end of Chapter $1$ mini$-$case $$Competition in the airline industry$$ and submit your answer as attachment to Blackboard. Please also post on the discussion forum #$1$ to discuss your answer with the class.

In your answer, try to draw the distinction between I$/$O model and Resource$-$based model to explain firm performance in the airline industry.

Please pay attention to the following when you prepare the answer:

The purpose of this assignment is to do a reality check on I$/$O model, one of the two models we will use in strategic analysis, as in Ch$2$ and $3$ to be covered in Week$2.$ The two models are the theoretical foundation of strategic analysis and they are complementary to each other, as you see in Chapter $1$ and the corresponding lecture note #$2.$

The key question in Assignment #$1$ is to identify the resources an airline company may have that other competitors cannot easily duplicate$/$imitate$.$

The takeaway from this assignment is: not all the assumptions of I$/$O model $($there are four$)$ apply to the airline industry. So we need to combine I$/$O model $($more in Ch$2$ and Assignment #$2$ on US automobile industry$)$ and resource$-$based model $($more in Ch$3$ and Assignment #$3$ Zara$)$ to predict a firm$$s competitive advantage.