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porter s five forces analysis airlines

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... Porter believes that there are five specific forces that impact the external competitive environment of an organization. These forces are:
(1) Threat of new entrants
(2) Bargaining power of suppliers
(3) Bargaining power of buyers
(4) Threat of substitute products
(5) Rivalry among existing competitors.
In examining the structure and environment of American Greetings in the mid-1980's it appeared that the company was being heavily impacted by many of these competitive forces. How the company as impacted by these competitive forces is documented below by topic. An excellent guide to doing a SWOT analysis.
American Greetings
Threat of New Entrants: The threat of new entrants to American Greetings is reactively limited. There are large cost barriers to entry in the greeting card industry. New entrants would have to make very large investments and they are entering a mature market. They would have to create very diverse and unique products, but there would still be vast marking costs and with most marketing niches covered by this company, Hallmark and Carton , it would be unlikely that the new entrant would be able to gain enough market share to sustain itself relative to high production costs. Bargaining Power of Suppliers: The bargaining power of suppliers is not a significant threat to ...

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