2. Why is there a lot of imitation in the airlines industry, and how does this affect firm performance?There are a few reasons that airlines are subject to imitation. First, there are few supplierswithin the airline industry, partially because of the high costs involved with creating aircraft. With suppliers having such power, the supply side of aircraft is relatively set in stone for all airlines (Baumwoll et. al, 2008). This creates little room for differentiation. Second, with such heavy overhead costs, there are fewer options to do things differently and still make a profit. Yourwelcome:)