Airline industry Free Essay, Term Paper and Book Report
AIRLINE ANALYSIS BASED ON PORTERâS FIVE FORCES
In order to determine the competitive intensity and the attractiveness of the airline market, we choose Porterâs analysis method which derives five forces as follow:
The intensity of competitive rivalry within an industry
The intensive competition in airline industry causes many financial difficulties and bankruptcies to many airlines. Merger is inevitably a mean for many companies to remain in the competition (e.g Air France-KLM). Consolidation is chosen by many airlines through forming alliances and partnerships in order to survive.
Availability of Substitutes
For regional airlines, the threat of substitutes of train, bus and car might be a little higher than international carriers. When considering time, money and personal preference, the passengers find conveniences in the air travel industry.
Threat of new entrants
Despite the intensively competitive industry, the high level of profitability still attracts many new entrants. Nowadays, new entrants are only concerned with the low cost airlines as consumers are mo......
Word Count: 784
Page Count: 3.1 (250 words a page / double spaced)
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