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Essay

Government Impact On Airline Industry

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Issue:

Business

 

Written by:

Michael S

 

Date added:

August 4, 2015

 

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Grade:

A

 

No of pages / words:

5 / 1344

 

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8144 times

 

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Essay content:

The diagram below (adapted from M. Porter, Competitive Strategy CH.1) shows in simple form the five forces, which can be seen as determinants of industries profitability. There are two reasons why a firm may perform well in an industry, either 1) the industry is attractive to any firm 2) the firm is better and outperforms it’s rivals...
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Porter’s theory therefore can be used to discover the markets that are attractive to firms or, in those which aren’t breaking down the five forces so a strategy for success can be developed. In general the firm with be more profitable if each of the forces is low, that is to say there is a low threat of new firms entering, if buyers and suppliers have little power over the firm, if there is a low threat from substitute products and if competitive rivalry is low...
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