Swot Analysis Of Airline Industry

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Porter five forces model:
Porter five forces model is the good example to analyze the market position of the industry and the opportunities and the threats which could affect the company directly. Company’s capabilities are determined and then threats are utilized.
Threat of new entrant:
Threat of new entrant in the market is very tough. There is the lot of finance required to enter into the industry. The companies already entered in the market will not allow any new competitor to stay. they are already many national and international airline companies are working which reduce the chance to enter the new entrant in the market because it require the long term process to plan and start getting the revenue even after the company is established.
Bargaining power of the buyer:
Bargaining power of the buyer is high. Many different airlines give the advantage to the people to go with which one is offering the best one. Indian people are not so much rich therefore people go with the good prices and excellent services which make the power of the buyers very high.
Bargaining power of the supplier:
Bargaining power of the supplier is high. There are only few companies such as airbus and Boeing are making the good fleets on the larger scale. Few suppliers put the suppliers’ notch on the high and the airlines have to pay what they demand. Indian airline industry has the flexibility to make the order to the different countries because of having the strong relationships with the countries such as France, America and Germany which provide the fleet facility to them. Air India has the wide range of airplanes available in the hanger which include the smaller and bigger planes and the range is getting bigger with the passage of time.
Threat of subst...

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...es to attract more customers

Conclusion:
To put all the above discussion in the nut shell, we can say that Air India has become the effective player in the Indian airline industry. The steps taken by the company show the commitment of the company towards the growth and the targets which the company sets for the short and the long term period. company may face some tough challenges in the future but the future of the aviation industry is very bright especially in India and as mentioned before the estimation show that what the company can actually make it from the given scenario help the cause of the company for the great extent. Company strategy will play the key role so it is important for the business to keep the strategic option wise so company can stay in the market and continue to grow for the longer period of time by achieving their objective on the same time.

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