Industry Analysis (Airline) Emirates Airline Term Paper

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Furthermore some of the existing companies already have loyal customers.

Bargaining power of suppliers

Suppliers have an effect on the industry through their ability to raise prices or reduce the quality of goods or services they provide. There are very few airline suppliers globally these are Airbus and Boeing this means that the suppliers have a high power since they are limited and hence control the market since the demand for their manufactured products is high (Rahman,2010.)

Bargaining power of Buyers

The industry is affected by the buyers through their ability to bargain for more services that are of high quality. The buyers' power in this industry is high since the airline industry serves many passengers. The costs of switching airlines are low and the passengers have a large option base.

Threat of a substitute service or product

This threat can be viewed on a regional and international point.

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This threat in the regional airlines is high since passengers may opt to drive their cars, or even board trains as a means of travel within the region. On an international level the threat is low since most people use airplanes are a faster and comfortable means of travel (Rahman,2010.)

Rivalry from existing firms

This is very high in the airline industry as there are a variety of airline companies that provide the same services to passengers (Rahman, 2010) Some of the airlines are very creative in their advertising strategies and they easily outdo others through this.

The airline industry is thus a very important industry globally. There from the analysis we see that there are many factors that affect it and all these have to be keenly monitored to ensure its success......

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