Download pdf - Ppt on Airlines Industry by Anup Kumar Ojha

8/3/2019 Ppt on Airlines Industry by Anup Kumar Ojha

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Presented By

Anup Kumar Ojha

MBA IV

1/10/2012UMA KOLKATA 1

ANUP KUMAR OJHA

MBA IV

USHA MARTIN ACADEMY


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INTRODUCTION

Air Traffic: The Airport Authority of India (AAI)manages total 122 Airports in the country,

which include 11 International Airports, 94domestic airports and 28 civil enclaves.

Top 5 airports in the country handle 70% of thepassenger traffic of which Delhi and Mumbai

together alone account for 50%. Passenger and cargo traffic has growth at an

average of about 9% over the last 10 years.



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HISTORY

The first commercial flight in India was

made on February 18, 1911, when a French

pilot Monseigneur Piguet flew airmailsfrom Allahabad to Naini, covering a

distance of about 10 km in as many

minutes.



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Porter's five forces analysis is a framework for

industry analysis and business strategy development

formed by Michael E. Porter of Harvard BusinessSchool in 1979



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Five Forces

Threat of new competition:

Profitable markets that yield high returns will attract new firms. This results inmany new entrants, which eventually will decrease profitability for all firms inthe industry. Unless the entry of new firms can be blocked by incumbents, theabnormal profit rate will tend towards zero (perfect competition).

The existence ofbarriers to entry (patents

, rights

, etc.) The most attractivesegment is one in which entry barriers are high and exit barriers are low. Fewnew firms can enter and non-performing firms can exit easily.

Economies of product differences

Brand equity

Switching costs or sunk costs

Capital requirements

Access to distribution

Customer loyalty to established brands

Absolute cost

Industry profitability; the more profitable the industry the more attractive it willbe to new competitors



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Threat of substitute products

or services The existence of products outside of the realm of the

common product boundaries increases the propensity ofcustomers to switch to alternatives:

Buyer propensity to substitute

Relative price performance of substitute

Buyer switching costs

Perceived level ofproduct differentiation

Number of substitute products available in the market

Ease of substitution. Information-based products are moreprone to substitution, as online product can easily replacematerial product.

Substandard product

Quality depreciation



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Bargaining power of customers

(buyers) The bargaining power of customers is also described as the

market of outputs: the ability of customers to put the firm underpressure, which also affects the customer's sensitivity to pricechanges.

Buyer concentration to firm concentration ratio

Degree of dependency upon existing channels of distribution

Bargaining leverage, particularly in industries with high fixedcosts

Buyer volume

Buyer switching costs relative to firm switching costs Buyer information availability

Availability of existing substitute products

Buyer price sensitivity

Differential advantage (uniqueness) of industry products



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Bargaining power of suppliers

The bargaining power of suppliers is also described as themarket of inputs. Suppliers of raw materials, components,labor, and services (such as expertise) to the firm can be asource of power over the firm, when there are fewsubstitutes. Suppliers may refuse to work with the firm, or,

e.g., charge excessively high prices for unique resources

Supplier switching costs relative to firm switching costs

Degree of differentiation of inputs

Impact of inputs on cost or differentiation

Presence of substitute inputs

Strength of distribution channel

Supplier competition - ability to forward vertically integrateand cut out the BUYER



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Intensity of competitive

rivalry For most industries, the intensity of

competitive rivalry is the major determinant

of the competitiveness of the industry. Sustainable competitive

advantage through innovation.

Competition between online and offlinecompanies

Level of advertising expense

Powerful competitive stretegy



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THANK [email protected]
