Competition

Record fuel prices and weakening demand for air travel are taking a toll on profits of major U.S. airlines, raising prospects of a consolidation in the industry this year. Recent merger talks and Thursday's announcement by American Airlines Inc. that it would double its fuel surcharge to $40 on round-trip tickets signaled that passengers could soon see higher fares industrywide.

Nintendo Co. was the big winner in the video-game console race in 2007, with sold-out sales of its Wii machine helping to send industry revenue soaring 43% to $17.9 billion last year in the U.S., according to a report released Thursday. Sony Corp., once the reigning champion with its PlayStation brand, came in last place out of the three major makers.

Yahoo Inc. plans to lay off hundreds of employees in business areas not central to its new priorities as it faces rising competitive pressures, a person familiar with the matter said Monday. The Sunnyvale, Calif.-based company, which has seen its share of online advertising decline despite its sites being among the Internet's most visited, is still deciding where to cut.

Silicon Valley entrepreneur Sramana Mitra captured a common sentiment in the title of a blog post last week: "Yahoo, Please Put Up a Fight." As its growth slows, Yahoo Inc. has taken steps to reorganize its management structure, narrow its focus and jettison some underperforming businesses. But it's still being outmatched in search advertising dollars by Google Inc. and in user growth by social networks such as Facebook Inc., which are rapidly gaining members and advertisers.

Conquest Student Housing, a firm accused of using intimidation and fraud against rival developers of off-campus student housing near USC, has agreed to stop challenging any competitors' projects within two miles of the school. USC and allied developers described the settlement, which was announced Friday, as a victory over a potential monopoly in the off-campus apartment business and as a step to provide more much-needed housing.

Jed Matzke sets out each day to guide love-struck couples to happily ever after. It's not as romantic as it sounds. The first stop in Las Vegas for brides and grooms is the Clark County Marriage Bureau, at the corner of Clark and 3rd, down the street from a bail bondsman and the county jail. Matzke hangs out six days a week at the Pit, as some call the corner, smoking Marlboros, sucking Werther's candies, waiting for his shot.

Whether a Microsoft Corp.-Yahoo Inc. combination would put a real obstacle in Google Inc.'s path or just a pothole would depend on whether the merged company got the kind of dynamic leadership that neither side has exhibited in recent years, analysts said Friday. The two companies have complementary strengths that ought to make them a tougher competitor as a team, such people said.

Wal-Mart Stores Inc. is working to open its first small-scale grocery stores in Arizona, according to city planning officials, as the world's largest retailer looks to fend off competition from British supermarket rival Tesco. Tesco entered the U.S. marketplace last year, opening 37 Fresh & Easy Neighborhood Market stores in California, Arizona and Nevada. The company is seeking to woo U.S. shoppers with small grocery stores that feature ready-to-eat meals and fresh produce. Bentonville, Ark.

In one commercial, Arab pop star Nancy Ajram hands bottles of Coca-Cola to a young couple quarreling, and instantly, the two lovers make up as colorful hearts and flowers flood out from the bottles. In another, Haifa Wehbe, a model-turned-singer and Arab world sex symbol, turns heads as she walks confidently through a film set in a blue, figure-hugging dress, putting her cool can of Pepsi up against the face of a sweating technician.

Shoes are to this industrial city what cars are to Detroit. And like the Motor City, Mexico's footwear capital is feeling the heat of foreign competition. The threat might not be apparent from the billboards hawking Mexican-made sneakers, boots and dress shoes that line the highway leading into town. Or from the malls devoted entirely to shoe stores. A statue of a cobbler graces a major thoroughfare. A footwear museum is under construction.