A Popular Low-Cost Airline, Parson Corp

Multiple Choice

A popular low-cost airline, Parson Corp., has gone out of business. Although the service and price provided by the airline was what customers wanted, the larger airlines were able to drive the low-cost airline out of business through an aggressive price war. Which component of the competitive environment does this illustrate?

A) customers
B) competitors
C) regulators
D) economic factors
E) threat of new entrants