Leadership discussion broad Essay Example | Topics and Well Written Essays - 250 words

Leadership discussion broad - Essay Example This industry provides unique services to its clients which include transportation of people and goods from one geographical locality to the other. The model applies in the following way in the industry. Two groups of buyers make up the industry. These include the individual buyers and travel agencies. Each airline has its own niche that makes have a number of loyal customers. Whereas some airlines puts their focus on the cost of their flights, others mainly focus on the quality of their services still winning a considerable number of loyal customers. Therefore, it is true to say that the bargaining power of the buyers in this industry does not pose a significant threat. In this industry, the major suppliers are the manufacturers of the airplanes. The planes are very similar considering that the two major airline manufacturers i.e. Boeing and airbus are the ones who deliver the planes. It is extremely hard for the airplane companies to switch their manufacturers due to the limited number of the latter. Therefore, the suppliers are few and their bargaining power has a quite significant threat to the whole industry. In the airline industry, consumers always tend to choose the brands or the names that are well established in the market. The existing firms stand out at a better chance over new entrants as they have a large cost advantage. Therefore, since the industry needs a lot of capital to invest in, this stands out as a less significant threat in the market. The airline industry in the U.S. has a medium substitute risk level just like any other in the world. There are various substitutes to airline travel. However, the major aspect still remains to be time. Therefore, the threat of substitutes is a significant threat considering that some of the substitutes are far cheaper than air travel. This is the major threat in the U.S. airline industry and any other industry in the world. Each firm is well established and it has a number of loyal