Last Updated 26 Jan 2021

Five force analysis airline industry

Essay type Analysis
Words 307 (2 pages)
Views 548

One of the forces in Porter’s Five Forces analysis that can be applied to the airline industry is the force of rivalry among competitors. Although the system of airlines is backed up by some extent by nationalization, there is a lot of competition, especially with the entrants of cost-cutting new airlines like JetBlue. Rivalry among competitors is a problem in the airline industry, as is shown by the close proximity in which airlines work in airports, and the fact that they often order airplanes from the same manufacturers.

The main problem is that competitors tend to be equally balanced in this industry, which requires that they build to a large extent within the economy of scale in which they operate (large fuel and operational costs, liability risk, regulation, etc. ). But some airlines operations are changing with new technology that allows them to increase their output significantly, separating them from other airlines.

If United, for example, was to start an operation and raise its average passenger load per flight by thirty-five or forty, it would have a distinct advantage over competitors with its capacity and profit structure. This type of competition, though, is hypothetical, and appears in reality to be divided among supply side economics. “When suppliers sell to a number of industries and a particular industry does not represent a significant fraction of sales, suppliers are much more prone to exert power.

Order custom essay Five force analysis airline industry with free plagiarism report


If the industry is an important customer, suppliers' fortunes will be closely tied to the industry and they will want to protect it through reasonable pricing and assistance in activities like R;D and lobbying” (Porter, 1980, p. 31). The airline industry has a high-stakes atmosphere, the company must also pay crucial attention to issues of safety and corporate responsibility.

REFERENCE Porter, M. E. (1980). Competitive Strategy: Techniques for Analyzing Industries and Competitors. New York: Free Press

This essay was written by a fellow student. You can use it as an example when writing your own essay or use it as a source, but you need cite it.

Get professional help and free up your time for more important courses

Starting from 3 hours delivery 450+ experts on 30 subjects
get essay help 124  experts online

Did you know that we have over 70,000 essays on 3,000 topics in our database?

Cite this page

Explore how the human body functions as one unit in harmony in order to life

Five force analysis airline industry. (2018, Mar 30). Retrieved from

Don't let plagiarism ruin your grade

Run a free check or have your essay done for you

We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

Save time and let our verified experts help you.

Hire writer