What was the airline industry’s first job?
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This Post Has 5 Comments
a. It will make the airline industry more attractive because of decreased supplier power.
In the aircraft industry the demand for major aircraft is low, so there will be excess supply of the service by Boeing and Airbus.
The two major players will need to come up with strategies to get their market share.
The competitive environment in the airline industry will result in opportunities for other players that will want to come in.
If there was market dominance by one of Boeing or Airbus, entry will be limited for new businesses in the non-competitive market.
Supplier power is low so there is no monopoly in the market.
C) While the domestic airline industry is mostly free from excess capacity, the internet-enabled appliance industry will have new entrants.
While the domestic airline industry is in the maturity stage of the industry life cycle, the internet-enabled appliance industry is in its growth stage. Therefore the statement that can be inferred from the given data is that: while the domestic airline industry is mostly free from excess capacity, the internet-enabled appliance industry will have new entrants.
The major feature of the growth stage in the industry life cycle is market rivalry due to the fact that there is now acceptance of the product, more new entrants join the industry and more intense competition results
Aviation has progressed a long way since the 120-foot flight by Orville Wright on December 17, 1903, at Kitty Hawk, North Carolina, and since the first U.S. airline began operating between Tampa and St. Petersburg, Florida, on January 1, 1914. Today supersonic aircraft fly routinely across the oceans, and more than two million people are employed in aviation, the aerospace and air transportation industries. Today's Airline industry is a global operation, providing travel and employment to hundreds of thousands of people much like yourself. The complex operations of each and every company require large numbers of employees, and offer many different work positions and locations. Visualize your local airport and how many different companies occupy space behind those long counters. Remember, those companies offer employment in every city they fly to, and your town is just one of thousands with an airport. Even so, the competition for these positions is extraordinarily high. Relocation is not always necessary, however suitable circumstances may take you to an airport other than your home town. Through our discoveries we hope to eliminate the overwhelming feelings which could, and often do, stop applicants dead in their tracks.
The correct answer is letter "A": It will make the airline industry more attractive because of decreased supplier power.
There are five (5) forces driving business according to American Harvard Business Professor Michael E. Porter (born in 1947): Competitive Rivalry, Supplier Power, Buyer Power, Threat of Substitution, and Threat of New Entry. Supplier Power involves the influence providers of goods or services have in the industry to change the price of their products. Frequently, they gain power when there are more suppliers than customers, or when suppliers are willing to unite.
While Boeing and Airbus compete on the aircraft market, they have little power supply that can draw investors interested in participating in the domestic flights market.