New Venture Porter five forces – the pure competition model implies that the risk adjusted rate of return should be constant across firms and industries. However‚ there is number of economic studies have affirmed that different industry could sustain different levels of profitability. Part of the difference is explained by industry structure. Michael Porter has provided a framework to identify an industry as being influenced by five forces (Anon‚ 2010). Barriers to entry It can be complicated
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General Environment Analysis of Cathay Pacific Airways Cathay Pacific is the flag carrier of Hong Kong‚ with its head office and main hub located at Hong Kong International Airport. Then‚ what are the effects of the six factors on the Cathay Pacific Airway’s performances in this society - Hong Kong? I will analyse them one by one. Demographic √ Hong Kong’s population is 7.03 million. About 95% of the people of Hong Kong are of Chinese descent‚ the majority of whom are Taishanese‚ Chiu Chow
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Porters 5 forces Virgin Australia Threat of new entrants – The airline industry has been around for over 100 years and due to large capital requirements and overhead (high cost of planes)‚ the industry would not be greatly affected by new entrants and therefore the threat of new entrants is high. With low operating margins and high initial investment‚ a high market share is needed to ensure full flights (maximizing profits on each flight). This would be difficult for a new entrant. Industry
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matter which industry your business is in‚ you can assess the forces that influence your business‚ including its strengths and weaknesses‚ using this set of five Market Forces‚ in order to leapfrog over your competition by better understanding the industry you and your rivals operate in. Created by Harvard Business School professor Michael Porter to analyze the attractiveness and likelihood of profitability of an industry‚ Porter’s Five Forces are a simple but powerful tool for understanding where power
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Introduction Cathay Pacific Airways is an international airline registered and based in Hong Kong‚ offering scheduled cargo and passenger services to over 80 destinations around the world. They are deeply committed to Hong Kong‚ where the Company was founded in 1946. They continue to make substantial investments to develop Hong Kong’s aviation industry and enhance Hong Kong’s position as a regional transportation hub. In addition to their fleet of aircrafts‚ these investments include catering‚
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Porter 5 forces Analysis for JetBlue Airway Potential Competitors: Low - Rivalry among existing firms is intense‚ which affect the profits to be low. It¡¦s unattractive to the potential competitors. - High initial investments and fixed costs such as lease a fleet of safe and reliable aircraft‚ negotiate reasonable gate access and landing fees as well as high labor and fuel costs. - There are the price competitions in the airline industry‚ which some major airlines offer the low-price fares that
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With Porter five forces framework‚ we identify the sources of competition facing IBM:-1.Threat of new entrantsHigh capital requirement needed to fund R&D and assets make the threat of new entrants relatively low. IBM spends large amount of funds annually for R&D‚ in order to constantly introduce new high-technology and innovative products and solutions to market to maintain its’ competitiveness‚Tougher for new entrants to achieve economies of scale due to experience curve effect. In addition‚ Consumers’
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Cathay Pacific‚ Lufthansa and Thai Airways p1/19 BBA2 - Marketing 1 – Prof. Taylor Term Paper – SS/02 Cathay Pacific‚ Lufthansa‚ and Thai Airways By Stefan Broda‚ Dennis Damer‚ Suttinee Keawsuwan‚ Yin Tong‚ and Li Xin Table of Contents 1. Introduction ............................................................................................................................ 2 2. About the Three Companies................................................................................
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Porters 5 forces Understanding the Tool When looking at and trying to understand porters 5 forces the below must be understood and taken into consideration 1. The power of the suppliers. This means that if you have few supplier choices and the supplier provides key parts and services to you‚ you a very reliant on this supplier and they can dictate terms and price to you on the other hand if you have a wide choice of supplier you are in a better position to negotiate price and terms as you can change
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Cathay Pacific Case Analysis 10/25/2007 Cathay Pacific (CP) is an interesting case because it is an example of a company attempting to work in isolation‚ vertically integrated and developing all their needs themselves. Truth is however; in today’s interconnected economy a company working independently simply can not compete. The world has become too dynamic and contains too many other companies developing better solutions to rely solely on one’s internal organization. Cathay eventually
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