Strategic group map of the low cost airline industry

This will be followed by the appliance of the model to the chosen industry while plotting the 22 investigated enterprises within strategic group maps each showing the interrelation of two chosen criteria. Therefore, the first part will shortly summarize the model including issues concerning the appliance as well as advantages.

However, this assumption is contrary to the elucidations of Hill and Jones and will further referred to in a later part of this paper. In addition, by as can be seen in figure 1. The second part will than have a short look at current trends and factors driving the industry.

Mobility barriers also include exit barriers e. Vertical integration in interrelation with geographical scope. Service quality in interrelation with organization size.

However, Strategic groups are not equivalent to market segments, but are defined on the ground of a wider concept of strategic position Porter, pg. Within the European Union, air services were fully deregulated and liberalised by the early s. Airlines, therefore invest billions in new fuel-efficient aircraft with advanced avionic systems, but the industry and governments mutually will need to face the future with a globally harmonised approach to both infrastructure and environment.

Strategic group model of the European airline industry

This was followed by years of rapid growth, and the advent of several new airlines, especially no frills carriers, to challenge the primacy of the major national flag carrier.

To cope with all the mentioned threats most of the European carriers are part of alliances e. The data supporting each variable were gathered through researching each individual company website profile as well as the websites of the main alliances.

In addition, the industry has an important support network consisting of a variety of associations and lobbies acting in place of the interest of members e.

Product range in interrelation with geographical scope. Air travel is a vital factor to reinforce the process of globalisation, allowing it to transform the way in which many other industries carry out their business.

Individually developed using the collected data as can be seen in table 1. One world, Star Alliance or have significant strategic partnership. Finally, the model will be critical evaluated concluding in giving evidences about the overall value of the model.Market share of US Airlines is the primary focus among competitors, as evidenced by all major American Airlines having less total enplaned customers in than in the previous year STRATEGIC GROUP MAP Existing competitive rivalry between suppliers.

Strategic group model of the European airline industry - A critical evaluation of an external analysis model - Sandy Katrin Schmidt - Seminar Paper - Business economics - Operations Research - Publish your bachelor's or master's thesis, dissertation, term paper or.

The Strategic Group Map as an Analytical Tool We are now in a position to return to a discussion of the strategic group map as an analytical tool.

The map is a very useful way to graphically display competition in an industry and to see how industry changes or how trends might affect it. A strategic analysis of the European airline industry applying the Porter business model Strategy analysis airline industry With Travel Agencies • Strong Targeted Sales • Fares for Each Target Group • Large Employee Structure & Offices Low Cost Carriers • Point to Point Network • Small Airports • Quick Turnaround • High.

GROUP REPORT The competitive analysis of easyJet Summary The concept of 'low-cost' airline appeared in in the United States with the launching of Southwest (Southwest Airlines Co.).

Moreover, equipment linked with the airline industry are also expensive. That is why new entrants are restricted. Also, regulations are strict and. According to Porter (, p. ), "a strategic group is the group of firms in an industry following the same or a similar strategy along the strategic dimensions.".

Strategic group map of the low cost airline industry
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