ANURAE KUMAR
(( SEH BBA-B
aGusH
BUSINESS EWWIRGNNENT
ASE STUBY ANALYSIS
Porter's Pive force anal Bis of
Heany ety aspect of using Porter's
Five Forces for the airline industry,
are passenger trattre, operactini
expenses, fuel prices, and lending and
maintenance costs, Another Key
factors are competiticn from lour-
cost carierd who have inttiated the
cutthroat price wrar aMPecting every
player in the marcet,
het us reviews Porter's five forces
airline industre in detail,
a iuticn in the industry Ctrang
pare)
2, The threat of nerr entrants (lor to
medium force)
3. The leeergenining Pourer of
suppliers (atrang force)
4, The bargaining poser ofoustomers(strang force)
5, Threat of sulostitute product or
serucces(Mediunm foree)
t, Competition in the industry, (Strang
force)
The airline industry, com petittora
mays Bhass that the rivedlrsy, in
the curline industry iB extremely,
strong based m several reabard,
Sinee it 18 a Ww. investment
Cusiness option, the number of
competitors 18 not inorenting
phenomencal,. Ths industry, has entry,
and eit barriers; companied need
substantial investment to vent into
this business, Also, exiting ie not
eaby because of lang-term
commitments and agreements,
2. The threat of ner entrants (our to
medium force)
New entrants use lourer pricing
ey reducing extra costs and Heringiunovaticn to put pressure on ainine
industty, Hoirever, this 68 a las to
moderate force in the competition, The
entry, and exit barriers are Moderate, and
the initial investment to start a aoltee
shop v8 not exrtbcerctt, So, locally, ner
entrants have the potential to compete With
pants like airline industry. Studying
Porter's five Porces example, airline
industry, ure can see thet the brand
image, brand loyjecttyy, and market share
oP airline industn, oan mitigate this risk
Hectivels,, H hee the iftastructure,
Hreiercy, and very high product quality,
ae its defense against this treat.
Bolusive access to ras materials and
suppliers is another factor contrileuting to
ailine industry, | competitive edge.
3, the Beergecining pourer of Suppliers
Gstrang force)
The pater of suppliers in the airline
industry is a strang Porce in Porter's Pre
forces in the ainine industrs, There are
three main suppliers in the ainine industry,
including fuel, ciroralt, and labor.
ai. fn <8Extemal factors inhuence all these because
the oil price is fed leased on daboal
fluctuations, The seoond factor is airoredt
companied, and there are tito
Supplier, L,e,, Airlous and Boeing, So, the
loeargezining pater of these suppliers is very
Btreng, The third factor ib laloor, Which
aAlraye ohallenges companied with union
polities and demands.
4, The bargaining pourer of customers
(Strang Porae)
The airline industry, has alireys
remained very competitive, Still, with the
line tioeting and districution Bystem,
oustomers have direct access to schedules
and fares that helps them Keep the most
eomomical decisions, The ottry of lor-
cost carriers has also increased the
bargaining pourer of customers in Porter's
five forces in the ciline industry,
5, Threat of sulostitute products or
seruices(medium force)
There are mary attemactives for passengersto replace air treevel, They oan travel by
road, train or waeter transport, Hortever,
air travel id still the lest optic when
time is a factor, So wre om conclude
that this is a lor to medium force, This
actor L& more impacttul in regucnal
travel, Lthere Bhort distance Makes road
and train travel more eamomical, ln
tional travel, this factor has a