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5 Porters and Recommendations

Porter's Five Forces Model analyzes an industry's attractiveness and profitability by examining five competitive forces: the threat of new entrants, the power of buyers, the power of suppliers, the threat of substitutes, and the intensity of rivalry among existing competitors. The document discusses how each of these forces applies to the airline industry, noting competitive pressures from existing airlines, high startup costs, customer preferences, reliance on suppliers like jet fuel providers, and substitution threats from cars, trains, and buses. It recommends expanding operations internationally, increasing aircraft purchases, upgrading facilities, improving customer service, and enhancing on-time performance.

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62 views2 pages

5 Porters and Recommendations

Porter's Five Forces Model analyzes an industry's attractiveness and profitability by examining five competitive forces: the threat of new entrants, the power of buyers, the power of suppliers, the threat of substitutes, and the intensity of rivalry among existing competitors. The document discusses how each of these forces applies to the airline industry, noting competitive pressures from existing airlines, high startup costs, customer preferences, reliance on suppliers like jet fuel providers, and substitution threats from cars, trains, and buses. It recommends expanding operations internationally, increasing aircraft purchases, upgrading facilities, improving customer service, and enhancing on-time performance.

Uploaded by

Haru Haru
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Porter’s Five Forces Model

Potential Entrants Buyers


(Threat of Mobility) (Buyer Power)
• competetion from existing •preference of customers
airlines
• a discount airline
• expensive startup price
• lowest rates
• market conditions

Industry Rivarly
• consumer's sensitivity on
price
• low differentiation on
products
• added programs

Suppliers Substitutes
( Supplier of Power) (Threat of Substitues)
• airframes • automobiles
• jet-fuels • trains
• labors • bus
Recommendations
• To expand operations so that they can serve on other countries not just in United States

• To buy more planes in able to serve numerous passengers all over the world

• To upgrade and improve facilities to be more accommodated and comfortable airlines

• Improving customer service

• Improve time performance

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