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Submitted by arifbob on November 9, 2007
Category: Business
Words: 475 | Pages: 2
Views: 116
Popularity Rank: 83,881
Average Member Grade: N/A (Add a Comment / Grade this Paper)
Porter’s five forces
on paypal
Threat of
New entrants
Threats of New Entrants
The airline industry may seem very hard to break into but due to today’s financial facilitated society where every company or industry seeks to grow and with the assistance and access to bank and credit loans it is very possible for Tiger airways to face new entrants as competition. The more new airlines a company gains as competition the more saturated the airline industry is vulnerable to. But factors like brand name and incentives which Tiger airways strongly commands helps it to lure customers.
Bargaining Power of Suppliers
The airline supply business is mainly dominated by Boeing and Airbus, following through Airbus is the supplier of Tiger for all its planes. For this reason there isn’t really a lot of cutthroat competition among suppliers. But airplane being the product supplied it tends to be very expensive and economically stabbing.
Bargaining Power of Customers
Airplanes are very expensive commodities and prove high in costs when switching airplanes, therefore the bargaining power of buyers in the airline industry is quite low. This counts for Tiger airways as well. Most of the prices are fixed and hence tiger airways must find suitable alternative to provide it customers service such that they prefer Tiger airways to other airlines. Anyways inconsistencies in the type of service can hinder sales for Tiger airways and cost it’s competitors to advantage.
Threat of Substitute Product or Service
There is more threat in budget airline or low cost airlines than international carriers due to its much more simplistic nature and lower cost than the latter. Because...
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