Assessments instead of online discussions and seminar Essay

Assessments instead of online discussions and seminar - Essay ExampleThe purpose of an intentness analysis is to assist an industrys anxiety to create and maintain a competitive advantage that helps a company to prosper in the foodstuff. industriousness analysis needs to understand the structure of an industry and its attractiveness because it determines the profit competency of a business (Hill and Jones, 201041). The level of industry profit powerfulness is not random but it rather has a systematic influence of the Industrys structure, which eventually determines the entry and exit barrier. This paper will analyze the industry analysis applied to different industries in European markets (1) - Industry compend Analysis of five forces using UK Airline industry as our case study Porter arguers that there are five forces that determines an industrys combat that may change over time as the industry conditions change. These forces are entry threats, rivalry from existing competitors , threat of substitution, bargaining office of suppliers and the bargaining power of buyers (Porter, 20086). This paper will outline the five forces that the European airline industry put into practice. Competitive rivalry (European airline industry) Competitive rivalry will be the first force to analyze. The purpose of competitive rivalry is to assess the rate of competition within an industry (Porter, 200829). Airline industrys is among the prominent industries globally that exist in an intensive competitive market. In Europe, the top three airlines are Air France, Lufthansa, KLM and British Airways. These airline companies compete against each other for the similar customers through prices, technology, in-flight entertainment customer service and other services (Rothkopf, 2009213). Entrants threat New entrants invade the existing market and bring competition and changes in the market environment. The cause of new entrants is the profitability in certain industries, which in tur n attracts other businesses who intend to join the industry (Porter, 20087). European air industry has alter tremendously which has led to attraction to new entrants however, the cost of entry is becoming higher. The required capital for an airline entering the industry is quite expensive. Competitive stand-in The products and services provided in a particular industry usually have the same substitutes elsewhere. This substitute products and services pose a threat because they limit the ability of a firm and their prices (Porter, 200825). In our case, the main substitutes that offer other forms of transport are road, rail and marine. The distances between European destinations are relatively small, and people like other transport services. More so, the substitute means of transport tend to be cheaper than air transport. Additionally, environmental factors affect air travel because customers tend to percolate the environmental impacts of air travel as crucial disadvantage. These factors pose threats to the British airways in the business market. Supplier bargaining power Bargaining power is the ability to influence setting of prices because it assesses the ease of suppliers to hike prices (Porter, 200826). Suppliers can influence the profitability of a firm by exerting pressure for both higher and lower prices. The airline industry have little control over the rising fuel prices because there is no alternative source of fuel so far because leading to the strength of supplier power (Porter,