Essay: Airline Industry Analysis

Sample Essay

Before the commencement of the analysis, it is important to realize that the airline industry is a global industry with many players interacting in the market. These include airlines such as Etihad Airways, Emirates, Cathay Pacific and United; air craft manufacturing companies such as Boeing, Airbus and Douglas; governmental organizations, regulation authorities, and the millions of customers travelling with the airlines.

From the view point of analyzing this industry or any other industry, it is extremely important, rather essential, to carefully scrutinize the nature of these industry players and how they affect the industry, both individually and interacting with each other.

We used the classical Five Forces framework designed by Michael Porter to conduct an analysis of the Airline industry. The five forces are Bargaining Power of Customers, Bargaining Power of Suppliers, Threat of new entrants, Threat of Substitutes and Rivalry among competitors. Together, these five forces act and affect the cost and price of business in a given industry and consequentially the profit one can make in the business. Therefore, it is important to loot at each of these five forces very carefully, and then apply the aspects of these forces to the relevant industry – the airline industry in this case.

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