Porter’s Five Forces Threat of New Entry in the Airline Industry.ppt

Porter’s Five Forces Threat of New Entry in the Airline Industry Porter’s Five Forces Intensity of Rivalry in the Airline Industry Porter’s Five Forces Threat of Substitutes in the Airline Industry Porter’s Five Forces Power of Suppliers in the Airline Industry Porter’s Five Forces Power of Suppliers in the Airline Industry Porter’s Five Forces Power of Suppliers in the Airline Industry Porter’s Five Forces Power of Suppliers in the Airline Industry Porter’s Five Forces Power of Buyers in the Airline Industry Summary of the Five Forces Analysis * * No Tariffs Trade Restrictions Overall Strength of this Force: Moderate No Regulatory Policies Yes Access to Distribution Channels No Cost Disadvantages other than size Yes Resource Requirements No Brand Preferences No Learning Curve Effects No Access to Technology No Economies of Scale Potential Barriers to Entry: Yes/No Overall Strength of this Force: Strong Yes Diverse Competitors Yes Dissatisfaction with Market position Yes High Exit Costs Yes Buyer’s have low switching costs Yes Use of Price Cuts Yes Slow Growth Yes Large # of competitors or equal in size Intensity of Rivalry: Yes/No Overall Strength of this Force: Weak Yes Buyers can easily switch No Substitutes w satisfactory attributes Yes Availability of Product Substitutes Threat of Substitute Products: Yes/No Overall Strength of this Force: Strong No Not costly for industry to backward integrate No Input does not affect quality/performance No Input is not sizable fraction of costs No Low Switching to substitute inputs No Available Substitute Inputs No Supplier items - easily available standard commodity Aircraft Manufacturers Power of Suppliers: Yes/No Strength of this Force: Strong No Not costly for indu