Another major barrier to entry is the brand name of existing airlines and it is really difficult to lure customers out of their existing brands. On the other hand, a newcomer could enter this saturated market easier with a completely new concept and/or technology. This was the case when Southwest entered the airline industry, with the new concept of budget or low cost travelling...
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This was the case when Southwest entered the airline industry, with the new concept of budget or low cost travelling. The new concept was appealing to whole new universe of customers who previously would have thought multiple times before deciding to fly developed by Michael E. Porter of Harvard Business School in 1979...
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