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Essay / Research Paper Abstract
This 3 page paper is a concise analysis of the Irish airline; Aer Lingus, using Porters Five Forces model looking at the rivalry among existing competitors, the threat of new entrants, the power of buyer, suppliers and the attraction of substitutes.
Page Count:
3 pages (~225 words per page)
File: TS14_TEaerlingp5.rtf
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Unformatted sample text from the term paper:
other national flag carriers with a fleet of 30 aircraft and a turnover of ?906.8 million in 2004, and faces a high level of competition. To consider this we can
use Porters Five Forces model. Rivalry among existing firms The rivalry between airlines is fierce, the overheads are high and margins are low so all airlines try and fill
the flights. This has lead to a high level of competition from low cost airlines, for Aer Lingus this has been specifically RyanAir. The low cost airlines have driven costs
down for all carriers. To help compete with many of the larger carriers Aer Lingus is a member of the Oneworld alliance, but has decided to withdraw from April
2007. it was stated that the reason for this is the change to pursue a low cost market strategy in the future.
The company is also subject to a takeover bid from the rival RyanAir following Aer Linguss flotation on the Irish stock market in October 2006. In order to fund
the best way to compete the airline takes regular customer surveys and seeks out new strategies, this was seen with the "Programme for a Better Airline" initiative that was used
to help the airline create differentiation as a way of competing, In the Irish market the company also had the cost advantage and with the routes and reputation this makes
the company an ideal target for a takeover by rival RyanAir which would give it more than 78% of the Dublin market share. Threat of new entrants
New entrants are a risk in any business, however, in the airline industry there are many barriers to both entry and exist. To compete it is
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