Furthermore some of the existing companies already have loyal customers.
Bargaining power of suppliers
Suppliers have an effect on the industry through their ability to raise prices or reduce the quality of goods or services they provide. There are very few airline suppliers globally these are Airbus and Boeing this means that the suppliers have a high power since they are limited and hence control the market since the demand for their manufactured products is high (Rahman,2010.)
Bargaining power of Buyers
The industry is affected by the buyers through their ability to bargain for more services that are of high quality. The buyers' power in this industry is high since the airline industry serves many passengers. The costs of switching airlines are low and the passengers have a large option base.
Threat of a substitute service or product
This threat can be viewed on a regional and international point. This threat...
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