Topic > Swot Analysis of the Aviation Industry - 1281

Porter's Five Forces Model: Porter's Five Forces Model is the good example to analyze the market position of the industry and the opportunities and threats that could directly influence the agency. The capabilities of the company are determined and then the threats are used. Threat of new entrant: The threat of new entrant in the market is very tough. There is a lot of finance required to enter the industry. Companies that have already entered the market will not allow any new competitor to remain. there are already many national and international airlines are working on reducing the chances of entering the market for the new competitor because it requires a long-term process to plan and start earning revenue even after the company is established. Bargaining Power of the Buyer: Bargaining power of the buyer is high. Many different airlines give the advantage to people to choose the one that offers the best. Indians are not very rich, so people choose good prices and excellent services which makes buyer power very high. Bargaining Power of Supplier: Bargaining power of supplier is high. There are only a few companies like Airbus and Boeing that build quality fleets on a large scale. Few suppliers set the supplier bar high and airlines have to pay what they demand. The Indian airline industry has the flexibility to place orders across different countries due to strong relationships with countries like France, America and Germany which provide them with fleet facilities. Air India has a wide range of aircraft available in the hangar which includes smaller and larger aircraft and the range is getting wider as time goes by. Threat of subs...... middle of paper ......es to attract more customersConclusion:To summarize all the above discussion, we can say that Air India has become the effective player in the Indian airline industry. The steps taken by the company demonstrate the company's commitment to growth and the goals the company has set for itself in the short and long term. the company may face some tough challenges in the future but the future of the aviation industry is very bright especially in India and as mentioned before, the estimates show that what the company can actually make from the given scenario helps the cause of company for large extension. Business strategy will play a key role, so it is important that the company maintains the wise strategic option so that the company can stay in the market and continue to grow for a longer period of time while achieving its goals.