AIRLINE - Five Forces Analysis

AIRLINE - Five Forces Analysis

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Intensity of Existing Rivalry

Large industry size (AIRLINE ) Large industries allow multiple firms and produces to prosper without having to steal market share...
Fast industry growth rate (AIRLINE ) When industries are growing revenue quickly, they are less likely to compete, because the total...
Exit barriers are low (AIRLINE ) When exit barriers are low, weak firms are more likely to leave the market, which will increase the...

Bargaining Power of Suppliers

Volume is critical to suppliers (AIRLINE ) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...

Threat of Substitutes

Bargaining Power of Customers

Low dependency on distributors (AIRLINE ) When produces have low dependence, distributors have less bargaining power. Low dependency...
Product is important to customer (AIRLINE ) When customers cherish particular products they end up paying more for that one product. This...
Large number of customers (AIRLINE ) When there are large numbers of customers, no one customer tends to have bargaining leverage....

Threat of New Competitors

Strong distribution network required (AIRLINE ) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to...
High capital requirements (AIRLINE ) High capital requirements mean a company must spend a lot of money in order to compete in the...
High sunk costs limit competition (AIRLINE ) High sunk costs make it difficult for a competitor to enter a new market, because they have to...
Strong brand names are important (AIRLINE ) If strong brands are critical to compete, then new competitors will have to improve their brand...
Advanced technologies are required (AIRLINE ) Advanced technologies make it difficult for new competitors to enter the market because they have to...
Customers are loyal to existing brands (AIRLINE ) It takes time and money to build a brand. When companies need to spend resources building a brand,...
High switching costs for customers (AIRLINE ) High switching costs make it difficult for customers to change which products they normally...
Entry barriers are high (AIRLINE ) When barriers are high, it is more difficult for new competitors to enter the market. High entry...

What is Porter's Five Forces Analysis?

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