Aviation Industry Life Cycle-
The industry life cycle analyse the effect of industry evolution on competitive forces that has five evolution stage of the industry and five distinct type of industry environment. It shows how the strength of the competitive forces change the environment of the industry. The five stage of the industry life cycle are as follows- 1. Fragmentation or Embryonic stage-
In this stage, the entrepreneur overcomes the twin problems of innovation and invention, and works out how to bring the new products or services into the market. So the price of the service or product will be high. Example – in Europe only high income people travel by airline. If barrier to entry is quite high then establish company will protect …show more content…
Shakeout-
In this stage, a new industry emerges due to decrease in industry growth. During the shake-out stage, competitors start to realise business opportunities in the emerging industry. The value of the industry also quickly rises. The demand will decrease as compare to historic data.
4. Mature-
In Maturity stage, the efficiencies of the dominant business model, the player who was 1st in the field get these organisations competitive advantage over competition. The competition in the industry is high because there are many competitors and product substitutes. Price and competition.
5. Decline-
In Decline stage, a war of slow destruction or decline between businesses develop and those with heavy bureaucracies may fail and exit the market. Some companies may leave the industry if there is no demand for the products or services, or they may develop new products or services that meet the demand in the market.
Industry …show more content…
The government also allowed the direct importation of fuel in 2012, with the aim of bringing down the final price lower, as direct imports help industries to evade the sales tax imposed by the public oil companies. This may help aviation companies to cut down fuel costs by 20% - 22%. However, the set-up costs to import fuel directly is very high as compare to the other product and not feasible for majority of the aviation companies, In January 2014, no company was benefitting from this change in government policy.
However, the current taxation system makes it impossible for aviation companies to make a profit in India, as a result of which any foreign company planning to invest in the country might hesitate to do so. Therefore, a change in policy by the government, however slow, along with international company tie-ups with private Indian companies such as Tata, will most likely drive the industry towards a better future. It might take a few years before the Indian aviation industry is debt-free and taxed as per the global standard but the country undoubtedly now appears to be on the right
The industry life cycle analyse the effect of industry evolution on competitive forces that has five evolution stage of the industry and five distinct type of industry environment. It shows how the strength of the competitive forces change the environment of the industry. The five stage of the industry life cycle are as follows- 1. Fragmentation or Embryonic stage-
In this stage, the entrepreneur overcomes the twin problems of innovation and invention, and works out how to bring the new products or services into the market. So the price of the service or product will be high. Example – in Europe only high income people travel by airline. If barrier to entry is quite high then establish company will protect …show more content…
Shakeout-
In this stage, a new industry emerges due to decrease in industry growth. During the shake-out stage, competitors start to realise business opportunities in the emerging industry. The value of the industry also quickly rises. The demand will decrease as compare to historic data.
4. Mature-
In Maturity stage, the efficiencies of the dominant business model, the player who was 1st in the field get these organisations competitive advantage over competition. The competition in the industry is high because there are many competitors and product substitutes. Price and competition.
5. Decline-
In Decline stage, a war of slow destruction or decline between businesses develop and those with heavy bureaucracies may fail and exit the market. Some companies may leave the industry if there is no demand for the products or services, or they may develop new products or services that meet the demand in the market.
Industry …show more content…
The government also allowed the direct importation of fuel in 2012, with the aim of bringing down the final price lower, as direct imports help industries to evade the sales tax imposed by the public oil companies. This may help aviation companies to cut down fuel costs by 20% - 22%. However, the set-up costs to import fuel directly is very high as compare to the other product and not feasible for majority of the aviation companies, In January 2014, no company was benefitting from this change in government policy.
However, the current taxation system makes it impossible for aviation companies to make a profit in India, as a result of which any foreign company planning to invest in the country might hesitate to do so. Therefore, a change in policy by the government, however slow, along with international company tie-ups with private Indian companies such as Tata, will most likely drive the industry towards a better future. It might take a few years before the Indian aviation industry is debt-free and taxed as per the global standard but the country undoubtedly now appears to be on the right