Discuss competitive rivalry in the Airline Industry? Why do many
of the companies in the industry...
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Discuss competitive rivalry in the Airline Industry? Why do manyof the companies in the industry suffer from low performance?
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Competitive Rivalry In The Airline Industry Competitive rivalry is quite high and intense in the airline industry Companies make heavy investments to enter the industry and the fixed as well as variable costs are substantial The switching cost of customers moving from one company to another is low and comparable benefits are offered by all the airlines which increases competition The industry is currently in a mature business cycle stage where the number of competitors will stay the same for a long and reasonable amount of time and will not be over or under capacitated Further because of high fixed costs and even loans involved it is not easy for any company to leave the industry In most cases there would be long term loans and financial agreements to comply with The products and services involved in the industry are also quite complex A firm may not like to lose any chance after putting in so much of efforts and investments and after gaining the expertise and complexity However the competitive rivalry in the airline industry also lessens due to certain factors One of these is the brand identities of the many airline operators which are quite
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