Roll Royce External Analysis

1345 WordsFeb 28, 20116 Pages
This report will analyze and discuss the most important elements of the marketing environment for Jet Engine Industry, that is to say the main 3 levels of the marketing environment: the micro-environment through the Degree of Rivalry, Treat of new entry, Treat of substitutes, Bargaining of customers power, and Bargaining of supplier power, while, the macro-environment through Political, Economic, Social, and Technology forces. Finally, Opportunity and Threat that use to measure the risk for company to enter jet engines market. The analysis for the micro-environment is based on Porter’s 5 forces model and the one on the macro-environment is based on PEST analysis. Porter’s 5 forces is a technique to analyzing the industry and competitors.…show more content…
GE Co. and NASA are now working together for producing a open-rotor jet engine technology that will demonstrate the fuel saving of more than 30 per cent of the similar jet engine size (Gereport, 2011). While, Pratt & Whitney provides a new engine called Geared Turbo fan, which will help the airline company for fuel saving and quieter and cleaner than anything that available in the marketing recently. The engine is more fuel saving for 16 per cent than current engine (Online.WSJ, 2010e). These are the excellent technologies that will help airline industry lower fuel consumption and reduce carbon emission into the environment. Porter’s 5 Forces Analysis. • Bargaining power of suppliers The power of suppliers for the jet engine is considered as high because there is no substitute product that can replaced with it. Although, there are about hundreds of different suppliers for engine-makers. http://www.ft.com/cms/s/0/1ce2f620-7fc0-11df-91b4-00144feabdc0.html#axzz1EhBgVoJf • Bargaining power of buyers Buyers may have low bargaining power in this industry because customers of aircraft engines are especially price makers, with the market

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