I. INTRODUCTION A. Introduction U.S. Flightways (USF) is a large-sized airline which is publicly traded and has 80.000 employees. It serves more than 50 countries and 250 destinations. Latest airline related measurements show that the Available Seat Mile for USF is 169.9 and the Revenue Passenger Mile is 138.4. The Passenger Load Factor shows 81.5 and The Cost per Available Seat Mile is 11.3 cents per mile‚ whereas the Revenue per Available Seat Mile shows 10.7 cents per mile. USF has a total
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The purpose of this report is to inform airline executives about the external forces affecting their industry and what they can do to keep up with the changing business atmosphere. The terrorist attacks of 9/11 had a grueling effect on the economy‚ and while most industries are almost back to their pre-9/11 financial status‚ the airline industry is lucky to break-even. This report will explain three leading trends that are forcing the airline industry to re-think their stance on strategic planning
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Chapter 2 Characteristics of the Airline Industry The real difficulty in changing any enterprise lies not in developing new ideas‚ but in escaping from the old ones. John Maynard Keynes 2.1 Introduction In recent years‚ the European airline industry has exhibited impressively dynamics. The sector has gone through a drastic change on both the supply and the demand side. Unlikely in other industries‚ the driving forces governing the recent changes do not depend mainly on technological factors
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The Low Fares Airline---Ryanair By Kuan Li Introduction: Chief executive Michael O ’Leary blamed weaker exchange rates‚ greater competition and the continued impact of austerity measures in Europe for decline. However‚ sources at other airlines queried Ryanair ’s statement‚ saying they had yet to see similar signs (Thomas‚ 2013).In other words‚ that means the environmental impact of Ryanair is less than other airlines. At the same time also can know that Ryanair has strong actual strength. The
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The Five Forces Model (developed by Dr. Michael Porter of Harvard University) serves as a framework for examining competition that transcends industries‚ particular technologies‚ or management approaches. The underlying fundamentals of competition go beyond the specific ways individual companies go about competing (i.e. StrengthsWeaknesses-Opportunities-Threats (SWOT) analysis; the 4P’s of marketing: product‚ price‚ place‚ promotion). The underpinning of this framework is the
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Analyze Industry Structure In the analysis of the structure of the industry‚ competitive forces in industry analysis can be developed such as: 1. Threat of new entrants. In every industry there are problems for companies to face such as the entry of new competitor in the same industry. This is because it can lessen the market share of the company. These new companies use different approaches to attract the customers like they might offer cheap rates as compared to the well reputed brands for the
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PORTERS FIVE FORCES Threat of new entrants: Since nokia was a profitable market. It becomes bait and other companies would like to join. Unless the new entry firms can be blocked‚ the revenue or profit will reduce. However in other to be able to compete with established firms‚ new entrants will need to invest highly in technology and marketing. Hence the threat of new entrants is very low. Power of suppliers: Nokia has a number of suppliers who provide them with equipment’s. Hence nokia could
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Five Forces Analysis of Video Game Console Industry Threat of Substitutes: The main substitute for a video game console would be a personal computer. They can both be used for playing different types of video games and be used for entertainment. The threat of this substitute edging out video game consoles is very low‚ because they are not completely similar. If anything‚ video game consoles are edging out personal computers in the gaming industry. The threat of substitutes in the video game
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------------------------------------------------- Name: Steve Thaxton Assignment: #3 Industry Analysis Term: Summer 2013 Course: Strategic Marketing Global Airline Size The 2013 global passenger airline industry is estimated to be a $539 billion industry with an additional $68 billion generated by these same firms through cargo transport9. The key measure of units for the industry is expressed as revenue passenger kilometer or RPK. This is defined as the actual kilometers
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Low-Cost Carrier A low-cost carrier or low-cost airline (also known as a no-frills‚ discount or budget carrier or airline or cheap flight) is an airline that generally has lower fares and fewer comforts. To make up for revenue lost in decreased ticket prices‚ the airline may charge for extras like food‚ priority boarding‚ seat allocating‚ and baggage etc. The term originated within the airline industry referring to airlines with a lower operating cost structure than their competitors. While the
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