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Porters Five Forces Analysis of the Airlines Industry - Case Study Example

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The paper "Porter’s Five Forces Analysis of the Airlines Industry" discusses that The small and medium enterprises are supposed to be at the supply side of the airline industry. In such a case, they would like to know about both the demand and supply side of the industry. …
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Porters Five Forces Analysis of the Airlines Industry
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Download file to see previous pages In the wake of the recent recession, the global airline industry has been affected in an intensive way. However, according to a forecast, revealed in the year 2009, the airline industry is expected to grow to a value worth $ 711 billion. In the year 2007, the industry grew by 5.6 % to reach a volume of 2,076 million passengers. In the year 2012, the industry is expected to reach the volume of 2,362 million passengers, which is an increase of 13.7 % from the value of 2007. The domestic segment dominated the global airline industry with more than 50 % of the industry’s overall volume. US airline industry is the largest airline industry contributing to 51.1 % of the global industry value (PRLog, “Press Release”).
This report has analyzed the airline industry from a global perspective. The report has taken into account the recent trends, development and other factors to arrive at the conclusion. Industry analysis tools have been used to fulfill this purpose. A conclusion has been inferred from the analysis.
During the first half of the 90s, the airline industry suffered from the intensive financial downturn and was adversely affected by the Gulf War. In the year 1991, the number of air travelers dropped drastically which pushed the airline companies to a disturbing financial state. The member airlines of IATA suffered a cumulative net loss of $ 20.4 billion in between the years 1990 to 1994 (Stanford, “Industry Overview”).
Starting from the mid-1990s until the start of the millennium, the aviation industry faced one of the significant booms in the industry. The researchers have identified many factors which had been influential for this industry. The worldwide increase in GDP, enhanced economy, greater demand for travelling and globalization were some of the significant driving forces. All these have enabled the industry to gain around 4- 6 % of healthy growth even in the subsequent few years (Cento, “The Old Industry”). ...Download file to see next pagesRead More
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