Apache External Anaylsis Essay

4177 Words Oct 22nd, 2014 17 Pages
UNIVERSITY OF HOUSTON – VICTORIASCHOOL OF BUSINESS ADMINISTRATIONECON 6351 ECONOMICS FOR MANAGERS INDUSTRY ANALYSIS PAPER:Airlines IndustryTable of Contents Executive Summary 1 I. Introduction 2 II. Market Structure 4 III. Industry Demand 5 IV. Cost Structure 6 V. Analysis of Competitive Forces (Porter’s Five Forces) 9 a) The Threat of Entry by New Competitors 9 b) The Intensity of Rivalry among Existing Competitors 10 c) Pressure from Substitute Products 11 d) The Bargaining Power of Buyers 11 e) The Bargaining Power of Suppliers 12 VI. Conclusion 12 VII. References 14 VIII. Appendices 16


Executive Summary

Due to the necessity of the services the Airline industry provide, its relevance has increased
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In addition to superior customer service, market strategists should help implement changes that will help keep pace with the recent rise in fuel prices and new technology development by other Airlines, this will help reduce competitors pressure in the industry. Airline Industry should be willing to add more direct connection flights to more routes, as this will help reduce cost for both the Airlines and passengers. Finally, Airlines industry should do more on incentives to their loyal customers, as this will help the industry not only to retain those loyal customers but also help protect industry brand in the long run. In this paper we were able to research into some of the challenges the airlines industry faces in this modern era and by that we’ve put together what we think are the key focus point: * Market structure analysis * Industry Demand * Cost structure analysis * Analysis of Competitive Forces (Porter’s Five Forces)
I. Introduction

In today’s society, it is difficult to envision modern life without air transportation. Air transportation has become the standard way of connecting globally effectively and efficiently. Accordingly, the airline industry has

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