Low cost carrier airline - Five Forces Analysis

Low cost carrier airline - Five Forces Analysis

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Intensity of Existing Rivalry

Relatively few competitors (Low cost carrier airline) Few competitors mean fewer firms are competing for the same customers and resources, which is a...

Bargaining Power of Suppliers

Low concentration of suppliers (Low cost carrier airline) A low concentration of suppliers means there are many suppliers with limited bargaining power. Low...
Volume is critical to suppliers (Low cost carrier airline) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...
High competition among suppliers (Low cost carrier airline) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...
Diverse distribution channel (Low cost carrier airline) The more diverse distribution channels become the less bargaining power a single distributor will...
Critical production inputs are similar (Low cost carrier airline) When critical production inputs are similar, it is easier to mix and match inputs, which reduces...

Threat of Substitutes

Limited number of substitutes (Low cost carrier airline) A limited number of substitutes mean that customers cannot easily find other products or services...

Bargaining Power of Customers

Threat of New Competitors

High sunk costs limit competition (Low cost carrier airline) High sunk costs make it difficult for a competitor to enter a new market, because they have to...
Customers are loyal to existing brands (Low cost carrier airline) It takes time and money to build a brand. When companies need to spend resources building a brand,...
Entry barriers are high (Low cost carrier airline) When barriers are high, it is more difficult for new competitors to enter the market. High entry...
High capital requirements (Low cost carrier airline) High capital requirements mean a company must spend a lot of money in order to compete in the...
High learning curve (Low cost carrier airline) When the learning curve is high, new competitors must spend time and money studying the market...

What is Porter's Five Forces Analysis?

WikiWealth's Five Forces analysis evaluates the five factors that determine industry competition. Add your input to low-cost-carrier-airline's five forces template. See WikiWealth's tutorial for help. Is WikiWealth missing any analysis? Check out our entire database of free five forces reports or use our five forces generator to create your own. Remember, vote up low-cost-carrier-airline's most important five forces statements.