CX Essay
  • 21.08.2019
  • 837
  • CX (CX web site) (airline market Five force model) (logistics) Marketing) (R & D) (HR)

External Environment Scanning services

Porter's Five Forces Analysis for Flight Industry

Threat of entry

The government imposes quite great deal restrictions around the entrance in the airline market. What's more, the high cost and high early stages investment capital for choosing airplanes happen to be barriers of entry. Menace of substitutes

The most threatening substitutes are traveling by train locomotives and automobiles. Because of the higher price of taking planes, many people choose to travel by trains or cars, specifically short-distance trip. But it uses a long time for individuals to take train locomotives or vehicles, so people tend to choose air whenever they will encounter long-distance trip or whenever they want just to save time. Therefore , the substitutes influence the industry a whole lot. Threat of powerful suppliers

The government also imposes quite lot restrictions on suppliers. Therefore , there are not many companies have rights to supply products to get airline sector. Airline corporations have few choices about suppliers, and so the suppliers' bargaining power is incredibly strong. Risk of powerful buyers

At most period, when people made a decision to travel by simply air, they do not have many options, and it is very hard for the buyers to unite to get services. Once sellers provides the service standards and price, purchasers have not do but accept that. So the buyers' bargaining electricity is quite fragile. Threat of rivalry

There are simply several flight companies in the market. Despite most of them provide similar providers, they share some variations in air paths. So , the threat of rivalry in air industry is not that fierce.

Internal Evaluation

1) Functions


2) Logistics

Cathay Pacific Breathing passages Limited is a very profitable flight and provides its business all over the world. They receive a large number of awards for his or her operational effectiveness and it has contributed a lot to their accomplishment. Behind all of this success there are plenty of tedious duties of aircraft maintenance, maintenance and services. Each and every flight requires normal maintenance to make certain operational smoothness and protection. This repair process may include regular repairing of aircrafts, change of damaged parts, repair of damaged parts, etc . And also to allow this technique of repair, Cathay Pacific requires a sophisticated spare parts administration process. They may have one aftermarket management method but it has its own drawbacks and certain problems need to be dealt with to refine the process and to increase the efficiency. Initial main point is that these aviation replacement components is very pricey and thus provides very unfavorable effect on Cathay Pacific's "balance sheet". They have sufficient inventory of those spare parts although of which significant percentage of parts are dead and inactive stock. They can't just get rid of these types of parts because for aeroplanes safety selected parts are essential and can be needed at any time. They cannot ground issues the plane for long time as costs of aeroplanes delays and grounding the airplane are very large.

3) Marketing

Cathay Pacific is the flag carrier of Hong Kong, with its head office and main centre located for Hong Kong International Airport, although the airline's registered workplace is within the 33rd floors of One Pacific Place.[2] The...


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