rolls royce porter 5 forces framework and analysis

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Introduction No business today operates in a complete vacuum unaffected by market forces. By their very nature business activities are competitive. Within a dynamic, rapidly changing business environment producers are constantly entering and leaving the market. At the same time, changing customer preferences provide signals for businesses to develop new strategies with different products and services. Some businesses will succeed by responding to and meeting market needs, while others may not perform quite so well. Few markets have changed in recent years as much as civil aerospace. Ten years ago 950 million people travelled by air; five years ago they numbered 1.1 billion and the total is set to climb to 2.5 billion by 2009. The…show more content…
Buying an aero-engine is a long-term decision. In this very competitive environment, a key element is relationship marketing. Through this process, Rolls-Royce and its staff have learned to develop activities and services that build good relationships with its customers. Customers are increasingly looking for a much more complete service. Although the product will always be important, customers expect higher levels of service such as the shipping of parts, after care service and total customer care. Where total customer care is successfully provided alongside efficient products, occasional customers become regular customers and then regular customers become advocates. The Rolls-Royce share of the competitive secondary engine parts market has been growing. An emphasis upon total care is at the heart of the growth strategy. Rolls-Royce provides parts and a service for its customers that extends through the operational product life-cycle. Porter’s Five Forces model One way in which staff within Rolls- Royce have focused their actions for responding to the changing role of the business, has been to use Porter’s ‘Five Forces’ model of industry competition. Five Forces analysis gives an improved understanding of the degree of competition within the business environment. It has helped them to develop a better understanding of the business environment so that business

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