Introduction to Marketing

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  • Topic: Airline, AirTran Airways, Federal Aviation Administration
  • Pages : 3 (1009 words )
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  • Published : March 11, 2013
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Valuejet 592-Case #1

5.
A. Describe the environment, as viewed by Michael Porter’s model of competitive forces, that Valuejet was trying to compete in. consider competition, suppliers, customers, new entrants, substitute products? The five competitive forces that shape strategy are competition, suppliers, customers, new entrants, substitute products. Michael E. Porter demonstrates how the five competitive forces can be used in any industry. The results from all five forces not only look at the narrow aspect of competition rivals but as well as broader aspect of competitive interaction within an industry. These five competitive forces can also be used in the case of Valuejet. Competition within the airline industry is highly competitive, even though the airline industry is among least profitable industry. The fights between competitors in the airline industry are exclusively on price try to give the customer lowest prices possible. Valuejet push the envelope too far while trying to cut their operating cost in order provide their customer with the best price. Since consumers are very price sensitive and are using online travel agencies such as Orbitz and Priceline to compare prices between companies. Making the airline industry ever more competitive and even harder for new entrants. Valuejet use suppliers or services such as SavreTech as subcontractors, in which could help Valuejet lower its cost and help lower the price for the customers. ValueJet also beat their substation by providing customers a faster and more convenient of traveling compare to taking a bus or train to their destination.

a. Is the use of subcontractors ethical? The text book define ethic as “a code of moral principles and values that governs the behaviors of a person or group with respect to what is right or wrong”. I don’t think the use of subcontractor are ethical because people believe the company, which they are buying from are doing its own work and effort in...
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