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Porters Five Forces Model for Qatar Airways - Assignment Example

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Summary
Qatar’s aviation industry has gone through a lot of development recently. Porter’s five forces model based on a study by A. Capital is as follows: Threat of New Entrants is Medium, Internal Rivalry is High, Bargaining Power of Suppliers is High, Threat of Substitutes is Medium, Bargaining Power of Buyers is High…
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Porters Five Forces Model for Qatar Airways
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Internal Rivalry is High: Internal competition in the aviation industry of Qatar is quite high with the main competitor being emirates airline. Emirates is one of the largest airlines in the world which stops over numerous destinations as opposed to Qatar Airways. Since it is opted by travels around the world, the airfare and services are quite affordable by travelers. Both airlines are in direct competition with each other because the rates of Emirates are lower. Bargaining Power of Suppliers is High: There is a low concentration of aircraft suppliers in Qatar which increases switching costs.

There are only two well-known manufacturers: Boeing and Airbus due to which they have an upper hand in the industry and can dominate Qatar Airways.The threat of Substitutes is Medium: There are very few options for people because the network of the rail is underdeveloped. Although the roads system is fully planned, there is no high-speed transport available for long distances. However, the presence of well-established airlines like Emirates and Etihad airways people can always switch towards them if their fares are more attractive.

Bargaining Power of Buyers is High: Buyers have many options to choose from because switching cost is low for them.

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