Porters Five Forces of Tiger Airlines

Topics: Cost, Costs, Competition Pages: 4 (654 words) Published: September 26, 2010

Tiger Airways is a low cost airline started its operations in Australia in November 2007 with its head office at Melbourne Tullamarine Airport. Tiger Airways offers cheap domestic flights to 12 destinations within Australia and expanding its operations by increasing its workforce, investment and started international flights. Tiger Airways ticket cost overs the seat booking and 15kg of check-in luggage and offers upgrades on luggage that is paid on top of ticket price. No food or drink is included in the ticket price however in-flight service offers food and drinks for sale. Generally these prices are expensive for budget conscious travellers.

Analysis of Porter’s Five Forces on Tiger Airlines:

The justification is provided in the form of a table.
|Force |Power |Justification | |Customers |High |Airline industries are customer driven thus face high competition emphasising | | | |bargaining power of customers: | | | |Cheap airfares offered by competitors | | | |Bargaining power of individual travellers where airfares become part of their | | | |income. Higher the airfare then they will look for cheap fares. | | | |Packages or deals available in the market. | | | |IT plays major role for easy access for upto date information to the customers | | | |viz e-ticketing. | |Suppliers |High...

References: 1. Laudon, K. C. & Laudon J. P. (2010). Management of Information System. Managing the Digital Firm (11th Edition): Prentice Hall NJ
2. http://www.tigerairways.com/au/en/index.php
3. http://www.scribd.com/doc/35106354/Airasia-Five-Forces
4. http://www.freeonlineresearchpapers.com/airline-strategic-management
5. http://www.itchy-feet.com.au/22/review-of-tiger-airways-australia/comment-page-1
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