Porter 5 force in avition industry

ORTER’S IVE FORCES N HAPING STRATEGY -

Michael E. Porter , 199 Pro!e""or, Har#ar$ %&i#er"it'

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A&i&$'a (a"-)ta (e#lee&a Mitra Sa'a& Na- (a" Shila/it Sar0ar (e*a&0r Gho"h

 The Fi#e Force"

INTRO(%CTION TO THE FIVE FORCES MO(E 1. Porter developed his Five Forces analysis in reaction to the thenpopular SWOT analysis, which he found unrigorous and ad hoc. 2. ased on the Structure-!onduct-Perfor"ance paradig" in industrial organi#ational econo"ics. $. %pplied to a diverse range of pro&le"s -' "ore profita&le &usinesses to helping govern"ents sta&ili#e industries. (. )elps in understanding &oth the strength of current co"petitive position, * the strength of a position one is considering "oving into. +. Possi&le to tae fair advantage of a situation of strength, i"prove a situation of weaness, and avoid taing wrong steps.

I&$ia& A#iatio& I&$"tr'  E&#iro&2e&t sti"ated Passengers/ 117 million domestic and 43 million international passengers 0lo&al aning/ 9th largest civil aviation market Total !arriers at Present/ 22 ( Including the branches of the parent company) First !arrier/ Indian ational !ir"ays (192#$194#) Total nu"&er of %irport/ 12# !irports First %irport / %uhu !erodrome (192&) o. of 3o"estic %irport/ &1 'omestic !irports o of 4nternational %irport/ 11 International !irports (Including  & ustoms !irports and 2# ivil enclaves at *ilitary !irfields) udget allocated / 3,345.67 Crore 5inister of %viation in the !entral 0overn"ent of 4ndia + !,it -ingh

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Many consumers look only to cost as a determining factor in a purchase. This creates an intense environment. Switching costs are generally low, even though companies have tried to increase switching costs with the use of “frequent yer” programs. ighly competitive industries generally earn low returns !ecause the cost of competition is high.

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ar-a & &- )o;er o "))lier" •

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ar-ai&i&- )o;er o! air)la&e "))lier" •

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Fe; "))lier" o! thi" )articlar )ro$ct. I& thi" ca"e, 2a/or "))lier" are the air)la&e 2a&!actrer  To) t;o 2a&!actrer" are oei&- a&$ Air*" Cha&ce" o! #ertical i&te-ratio& o! "))lier" i" #er' lo;

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