Strategic Analysis
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战略分析essay代写 The application of Porter’s Five Forces Model constitutes the evaluation of the airline industry using the power of suppliers and buyers
Question and Answer
Use Porter’s Five Forces Model To Analyze The Overall Profitability Of The US Airline Industry. Remember To Include A Conclusion
The application of Porter’s Five Forces Model constitutes the evaluation of the airline industry using the power of suppliers and buyers, barriers of entry and exit, and presence of substitutes and complementarities as well as the level of competition and rivalry (1). The three critical external environment items that determine the power of suppliers include fuel, labor, and aircraft.战略分析essay代写
Since they are not regulated, the supplier power is in the industry is immense. The prices for fuel are dependent on the global oil market which at times gyrate wildly due to political, economic and other global factors. The cost of labor is affected by the bargaining powers of workers through unions which can get unreasonable. Third, airlines require aircraft either on sales or lease. The major player in aircraft manufacturing are Boeing and Airbus and hence have power on the cost of airplanes. The three factors in the supplier side make the suppliers powerful in the airline industry. Thus, Porter’s Five Forces Model categorize them as high forces from the supplier side.
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问题和答案 战略分析essay代写
使用波特五力模型分析美国航空业的整体盈利能力。记住要包括结论
波特五力模型的应用构成了利用供应商和买家的力量、进入和退出壁垒、替代品和互补品的存在以及竞争和对抗水平对航空业的评估(1)。决定供应商实力的三个关键外部环境项目包括燃料、劳动力和飞机。
由于它们不受监管,供应商在行业中的力量是巨大的。燃料价格取决于全球石油市场,该市场有时会因政治、经济和其他全球因素而剧烈波动。劳动力成本受工人通过工会的议价能力的影响,这可能会变得不合理。第三,航空公司需要出售或租赁飞机。飞机制造的主要参与者是波音和空中客车,因此对飞机的成本有控制权。供应商方面的三个因素使供应商在航空业中具有强大的力量。因此,波特的五力模型将它们归类为来自供应商方面的高力。
On the other hand, the power of buyers is moderately high according to Porter’s Five Forces Model.
Buyers have the freedom to ticket needs after the emergence of online ticketing systems which have cut them loose from the mercies of the agents and intermediaries. The price wars and entry of low-cost carriers have benefited the fliers (2). Also, the use of a new Frequent Flier Program gives buyer options to the best program in the airline’s alliances. As such, buyer power though affected by the latest FFPs has remained moderately high. It has affected the level of profits made as well as mergers and bankruptcy of some airlines.战略分析essay代写
Moreover, according to Porter’s Five Forces Model, the barriers to entry and exit are high. To enter the industry requires a huge capital investment and sophisticated knowledge and expertise which not many companies or individuals can have (3). There is also a barrier to exit from the sector as the existing airline has to undergo rigorous regulations, write down and absorb huge losses. More so, airlines have adopted mergers and alliance for efficiency through economies of scale and thus new entrants may not be profitable. Profitability in the industry fluctuate depending on the alliances and mergers being in the industry, otherwise, most airlines have found the industry challenging due to entry and exit barriers.
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另一方面,根据波特的五力模型,买方的力量中等偏高。
在线票务系统的出现使买家摆脱了代理商和中间商的怜悯,他们可以自由地满足购票需求。价格战和低成本航空公司的进入使飞行员受益(2)。此外,新的飞行常客计划的使用为买家提供了航空公司联盟中最佳计划的选择。因此,尽管受最新 FFP 影响,买方力量仍保持适度高位。它影响了一些航空公司的利润水平以及合并和破产。
此外,根据波特五力模型,进入和退出的壁垒很高。进入这个行业需要大量的资本投资和复杂的知识和专业知识,这是很多公司或个人无法拥有的 (3)。由于现有航空公司必须接受严格的监管、减记并承担巨额亏损,因此退出该行业也存在障碍。更重要的是,航空公司通过规模经济采用合并和联盟来提高效率,因此新进入者可能无法盈利。行业的盈利能力取决于行业中的联盟和合并,否则,由于进入和退出壁垒,大多数航空公司都发现该行业具有挑战性。
However, the U.S. airline industry is immune from the threat of substitutes and complementarities.
Consumers do not have a preference for bus and trains over air travel (4). Although most Americans can use the motor for long distances, as a tradition, flying is a normal means of transport and hence not likely to affect the airline industry. On the other hand, the provision of free items like Wi-Fi, meals and other amenities do not increase the number of fliers. The flier traffic is determined by the amount of fare charged and other programs such as the Frequent Flier Program. The use of revenue-based FFP will not affect customer flying preference except for the minority elite customers.战略分析essay代写
Additionally, the U.S. airline industry is very competitive owing to the presence of low-cost carriers, tight regulations in terms of safety which raise costs, and the business models used. The regulation is on the supply side which results in the pampering of the buyers. As a result, low-cost carriers are able to attract more buyers with better services and hence literary grounding some airlines. The airline sectors in the U.S. has become the most competitive in the country’s economy.
Owing to the intense competition, high supplier power, and moderately high buyer power, the airline industry is not attractive for investment. The industry profitability is low and fluctuates from loss-making low profits (5). For instance, United’s profits for financial years from 2010 to 2014 fluctuate from 253 billion, 840 billion, (723) billion loss, 1,249 billion and 2,373 billion respectively (6). Most of these profits are attributed to mergers and acquisitions as well as alliances made.
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然而,美国航空业不受替代品和互补品的威胁。
与航空旅行相比,消费者不喜欢公共汽车和火车 (4)。尽管大多数美国人可以长距离使用发动机,但作为传统,飞行是一种正常的交通工具,因此不太可能影响航空业。另一方面,提供 Wi-Fi、餐饮和其他便利设施等免费物品并不会增加传单的数量。飞行客流量由收费金额和其他计划(例如飞行常客计划)决定。除少数精英客户外,使用基于收入的 FFP 不会影响客户的飞行偏好。
此外,由于低成本航空公司的存在、提高成本的安全方面的严格规定以及所使用的商业模式,美国航空业的竞争非常激烈。监管是在供应方面,这导致了买家的纵容。结果,低成本航空公司能够以更好的服务吸引更多的买家,从而使一些航空公司在文学上接地。美国的航空业已成为该国经济中最具竞争力的行业。
由于竞争激烈、供应商实力强、买方实力中等,航空业不具备投资吸引力。行业盈利能力低,从亏损低利润中波动(5)。例如,美联航 2010 至 2014 财年的利润分别从 2530 亿、8400 亿、(723) 亿亏损、12490 亿和 23730 亿(6)波动。这些利润中的大部分都归功于兼并和收购以及结盟。
Who Wins And Who Loses Because Of The New Revenue Based FFPs? How Will This Affect The Behavior Of United’s Customers?
United Airlines is the winner in the new FFPs. The program focuses mostly on making an extra dollar for every mile covered. The program wants to reward the high spenders and as a result, encourage fliers to use premium flying services from the airline. Also, the new FFPs program cut by half of the gains from the previous program. As a result, customers may shift to other airlines still using the conventional mile-based FFP such as American Airlines. Also, fliers from various tiers can spend more on tickets to earn more miles.战略分析essay代写
How Do You Evaluate United’s Adoption Of A Revenue-Based FFP? What Are The Pros And Cons?战略分析essay代写
United Airline will have high profits margins compared to the previous FFPs which was mile-based. Also, new FFP has a diverse revenue base as it involves other investors and partners. Besides, the program offers brands catering to different customers’ segments within the customer’s decision making segment. It is so because of extensive products offerings that come with FFP. However, the new FFP might not be as effective as intended as a consumer are not pleased with the plan. As such, the market may decline and hence overall profitability of the airline.
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由于新的基于收入的 FFP,谁赢谁输?这将如何影响美联航客户的行为? 战略分析essay代写
美国联合航空公司是新 FFP 的赢家。该计划主要侧重于为每行驶一英里多赚一美元。该计划希望奖励高消费者,因此鼓励乘客使用航空公司的优质飞行服务。此外,新的 FFP 计划削减了之前计划收益的一半。因此,客户可能会转向其他仍在使用基于里程的传统 FFP 的航空公司,例如美国航空公司。此外,不同级别的乘客可以在机票上花费更多以赚取更多里程。
您如何评估美联航采用基于收入的 FFP?优缺点都有什么?
与以前基于英里的 FFP 相比,联合航空公司的利润率将很高。此外,新的 FFP 拥有多元化的收入基础,因为它涉及其他投资者和合作伙伴。此外,该计划提供迎合客户决策细分市场中不同客户细分市场的品牌。之所以如此,是因为 FFP 提供了广泛的产品。然而,新的 FFP 可能不如预期的那样有效,因为消费者对该计划不满意。因此,市场可能会下降,从而导致航空公司的整体盈利能力下降。
Advantages of the New FFP
The new FFP rewards premium fliers who spend more per mile traveled (7). These customers are likely to spend the extra dollar to earn more miles. It is profitable to executive and business fliers and to the airline through high profits. Also, the program has enabled tracking of customers and hence they have ease of access to services since the airline subscriber’s details. Besides, the FFP offers e-money services through which the airline customer can accumulate and redeem point for a ticket or other services.战略分析essay代写
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新 FFP 的优势 战略分析essay代写
新的 FFP 奖励每英里旅行花费更多的优质飞行员 (7)。 这些客户可能会花费额外的美元来赚取更多里程。 它通过高利润对行政人员和商务飞行人员以及航空公司有利。 此外,该计划还可以跟踪客户,因此他们可以轻松访问航空公司订户的详细信息。 此外,FFP 提供电子货币服务,航空公司客户可以通过该服务累积和兑换机票或其他服务的积分。
Disadvantages of New FFP 战略分析essay代写
Airlines have introduced expiry date for the miles accumulated and hence it requires frequent flying for them to remain active (7). Also, the mileage accumulated is only redeemable to a particular airline. Various airlines have their loyalty program which is not transferable.战略分析essay代写
What Would You Recommend To American Airlines For Is Future FFP? Remember To Provide Support For Your Recommendation
The use of the new FFP should be dynamic and flexible as it is like to be affected by consumer behaviors. It is evident that not all airlines adopted the model but continue to use the conventional one. The new model is mostly revenue-focused and the consumer is the losers (8) as it rewards elite traveler more than economy class. Although the main focus may be to the external investment gained through the program, it is not likely to increase the customer base in the future. Therefore, future strategy to revert if the model fails is necessary. For instance, if in long-run profits and customer base decline, the company should label the model a fail and revert to mile-based FFP.
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新FFP的缺点 战略分析essay代写
航空公司引入了累积里程的到期日,因此需要经常飞行才能保持活跃状态 (7)。此外,累积的里程仅可兑换给特定航空公司。各种航空公司都有其不可转让的忠诚度计划。
您会向美国航空公司推荐什么是未来的 FFP?记得为你的推荐提供支持
新 FFP 的使用应该是动态和灵活的,因为它很可能会受到消费者行为的影响。很明显,并非所有航空公司都采用这种模式,而是继续使用传统模式。新模式主要以收入为中心,消费者是输家 (8),因为它比经济舱更能奖励精英旅行者。尽管主要关注点可能是通过该计划获得的外部投资,但未来不太可能增加客户群。因此,如果模型失败,未来的恢复策略是必要的。例如,如果长期利润和客户群下降,公司应该将模型标记为失败并恢复到基于英里的 FFP。
References 战略分析essay代写
- Baxter G. A Strategic Analysis of Cargolux Airlines International Position in the Global Air Cargo Supply Chain Using Porter’s Five Forces Model. Infrastructures. 2019 Mar;4(1): 1-28.
- Moreno-Izquierdo L, Ramón-Rodríguez AB, Perles-Ribes JF. Pricing Strategies of the European Low-Cost Carriers Explained Using Porter’s Five Forces Model. Tourism Economics. 2016 Apr;22(2):293-310.
- Hüschelrath K, Müller K. Market Entry and the Evolution of the US Airline Industry 1995–2009. Liberalization in Aviation: Competition, Cooperation, and Public Policy. 2016 May 6;13.
- Bhaskara V. Airlines Are Giving Customers Exactly What They Want [Internet]. Forbes.com. 2015 [cited 20 May 2019]. Available from: https://www.forbes.com/sites/airchive/2015/01/14/actually-airlines-are-giving-customers-exactly-what-they-want/#1669428b29bb
- Pearce B. Profitability and the air transport value chain. IATA Economics Briefing. 2013 Jun(10); 1-52.
- Oh, Wong-Yong. United Airlines: Frequent Flier Program. Ivey Publishing. 2016; 1-11.
- Brady S. The Pros and Cons of Frequent Flyer Programs – Go And Grow Online – Lead To Success [Internet]. Goandgrowonline.com. 2018 [cited 20 May 2019]. Available from: https://goandgrowonline.com/the-pros-and-cons-of-frequent-flyer-programs/
- Cranky Flier. Why Revenue-Based Loyalty Programs Aren’t the Right Answer [Internet]. Cranky Flier. 2014 [cited 20 May 2019]. Available from: https://crankyflier.com/2014/11/17/why-revenue-based-loyalty-programs-arent-the-right-answer/
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