Comprehensive Analysis of Sa Low-Cost Airline Industry

2869 WordsOct 9, 201012 Pages
TABLE OF CONTENTS QUESTION 1 1.1 Key Success Factors in the low-cost airline industry 3 1.2 Strategic group map example in the low-cost airline industry 5 QUESTION 2 2.0 Comprehensive analysis of SA low-cost airline industry 6 2.1 Buyer Power 10 2.2 Supplier Power 10 2.3 Substitutes 10 2.4 Rivalry 10 2.5 New Entrants 11 2.5.1 Government Policy barriers 11 2.5.2 Capital Requirements 11 2.5.3 Economies of Scale 11 2.6 Competitive Advantage 12 2.7 SWOT analysis 13 2.8 Conclusion 14 References 16 Question 1 1.1 Key success factors in the low-cost airline industries The low-cost airline industry has undergone cold season since terrorist attack in…show more content…
The model can be used to analyze major economic and technological forces in the airline industry that will ultimately influence the industry’s profit potential. Identifying this profit potential of industry provides the foundation for bridging the strategic gap between the firm’s external environment and its resources. It is clear that sufficient is known about the industry to reasonably propose strategies and policies to assist it. Not least, a number of existing shortcomings are identified. Below is a schematic representation of the porter’s five forces. 2.1 Buyer Power If buyers are able to bid down prices or demand higher quality products this increases competition among the competitors. The bargaining power of buyers is
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