Five Forces in Airlines Industry

Topics: Airline, Malaysia Airlines, Price discrimination Pages: 2 (450 words) Published: June 7, 2012
Five forces in airline industry — Presentation Transcript
1. Five forces in airline industry • It also check for the threat from outside It can review the competition within the industry  The Porter five forces model can be used to assess the competitiveness of the airlines industry. 2. The Porter Five Forces Model. •3. The Porter five forces model

Let view one of the segment, geographical .. for Malaysia. Then we can see straight away the prominent competitor which is Air Asia. The competitor will be one of the considerations for us to develop or strategy. c. Travel purposes.  b. demography  a. geographical markets  Take for example of Malaysia Airlines, The possible market segments are:  1. Competitive within the airlines – This is the rivalry with other airlines in your existing markets or future markets. 4. Concerns of an Airline • Let have a look at the market segment based on travel purposes. So one of the purpose of travelling is for business dealing, like meeting or discussion. With the advance in internet, some of the discussion can be done online, either through video conferencing or the simple chatting. Now we can see the real meaning of the threat to substitution.5. Threat from substitution • Like the case of the two airlines in Malaysia, MAS and Air Asia, there is always possibility that another airline will be formed to service the existing market. The likeliness of another airlines being formed, will depend so much on the barrier to entry and the lucrativeness of the business6. . Threat on new entrance • Some company have small number of customers which purchase a high volume of the products. Taking the example of Malaysian Helicopter Services (MHS) who has customer like SHELL and PETRONAS, will acknowledge the power these two buyers have. They can dictate what type of helicopter to operate and the price of the tickets. For airline such as MAS, with multiple segments and without single large...
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