THREAT OF NEW ENTRANCE BARGAINING POWER OF BUYERS

In spite of the low switching costs and the absence of proprietary goods and services, The common targets of Philippine Airlines
generally speaking, there is a low threat to new entrants in the airline industry. The huge are foreign and Filipino tourists alike,
amount of capital makes reprisals against new entrants through a price drop. This is expatriates and other businessmen, Overseas
evident among existing companies. Despite low switching costs, customer loyalty prevails Filipino Workers (OWFs), students, families
among certain carriers due to security, familiarity and customer experience. About two
and tour groups. Despite the various airline
years ago, there was a joint partnership between Globe Telecom and Philippine Airlines.
preferences of passengers, there has been
Globe 's mileage points achieved customer loyalty among Globe subscribers and Philippine
Airline passengers. Accumulation of mileage points secure freebies, upgrades and free
customer satisfaction among PAL 's
trips to customers. passengers over the past couple of months.

THREAT OF NEW
ENTRANCE

RIVALRY
AMONG BARGAINING POWER
BARGAINING POWER
EXISTING OF BUYERS
OF SUPPLIERS
COMPETITORS

THREATS OF SUBSTITUTE
PRODUCTS