VIETJET AIR

PORTER’S FIVE FORCES

ANALYSIS
P R E S E N T A T I O N
 1

VIETJET AIR
TABLE OF CONTENTS
Industry
competitors

2
Potential new
entrants

3
Bargaining
power of buyers

4
Substitute
products or
services:
5
Bargaining
power of
suppliers
INDUSTRY COMPETITORS
Faces intense competition from several
existing competitors

Full-service airlines like Vietnam Airlines

Low-cost carriers like Jetstar Pacific

Newer players like Bamboo Airways and

Vietravel Airlines

Competition in the industry is high

POTENTIAL NEW ENTRANTS

Threat of the new entrants is low

Has high High capital Requirement Requires good

barriers to requirements to comply relationships
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BARGAINING POWER OF BUYERS
The number of customers is high

Buyer’s ability to substitute is high

Because customers can easily switch to
other modes of transportation or alternative
Bargaining airlines

power of buyers
Customers are very price sensitive
is low to medium while different businesses provide different
levels of airline services

Low switching costs

Benefits from the growth of the internet made
product information easily accessible,
resulting in low switching costs.
SUBSTITUTE PRODUCTS OR SERVICES

Because the availability of the

substitutes is high, customers have
the option to choose from a range
of airlines that offer similar routes
and services, or other modes of
transportation.

Threat of substitutes is
medium to high
BARGAINING POWER OF SUPPLIERS
Bargaining power of suppliers is medium to high
The presence of multiple suppliers
In maintenance, ground handling
services and catering categories.
=> Vietjet Air has more options and
flexibility.
Vietjet Air is especially dependent
on fuel and aircraft suppliers
The price of aviation fuel is affected
by external factors such as global oil
market fluctuations.
=> Vietjet Air has limited control over fuel
prices.
Boeing and Airbus are two major
suppliers that easily control nearly
99% of the market share (CNBC, 2019)
=> Vietjet Air has limited options.
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