Porters Five Forces and the Driving Force of Change - Free Essay Example

Sample details Pages: 4 Words: 1070 Downloads: 2 Date added: 2017/06/26 Category Marketing Essay Type Narrative essay Level High school Did you like this example? Porter 5 forces and driving force of change Rivalry among competing sellers High Airlines industry experiences intense competition. It looks like the industry is in the business cycles maturity stage where buyer demand grows slowly and number of competitors appears to maintain the same with equally distributed market shares. In the pre-post airline deregulation era, air routes and price were established by the federal government. After the Deregulation Act of 1978, as the government gave more control power to airline carriers, the industry turned into an aggressive price competition for many reasons. First, airline carriers have very high fixed cost and narrow profit margin. Majority of operation costs come from the cost of planes, gasoline, airports landing fees, high-technology monitoring systems and the needs to meet government safety requirements. Moreover, labor costs for pilots and flight attendants, which are the largest expense according to Air Tra nsportation Association, do not depend much on how many passengers attending on the flights. On the other hand, variable costs for extra gasoline and food per passenger are insignificant. Under these high fix-costs and low variable-costs circumstances, flight carriers are motivated to undercut each others, for sales from every extra seat will go directly to their margin. Second, products of airline industry are weakly differentiated and buyers switching costs are low. Even though competitors try to build up their brand identities, consumers do not respond well with this differentiation strategy. While business travelers, who accounted for 30% of US total travel expenditure in 2013 may consider the total hours spent on flights and transitions, the rest 70% travel expenditure which come from leisure travelers tend to make their purchase choices heavily depended on price factor. Even though the airlines made effort to sustain customer loyalty by the introduction of frequent flier pr ograms, this competitive advantage soon gets less relevant because of similar membership offers and low-cost strategies across the whole industry. Third, consumer demand in airline industry has not totally recovered since September 11 incident. After September 11, 2001, the world enter global recession because of low consumer confidence in spending. Airline industry suffered not only from economic recession but also from consumerà ¢Ã¢â€š ¬Ã¢â€ž ¢s safety concern on flights, which led to huge drop in air traveling. Lastly, significantly high capital investment and advanced technology enable price transparency and comparison also contribute to intensity of the market. Potential new entrants low Airline industry faces low threats in new airline entrants because of large initial capital investment and high cost to meet government regulation. Even though airplanes and the right to use gates could be leased to reduce startup cost burden, the license process is very complicat ed and can take approximately one year. After that, they have to operate under frequent monitor by the Federal Aviation Administration and the Department of Transportation. As the competition is already intense and products offered are not well differentiated, existing incumbents are likely willing and able to contest new entry easily by lowering their price. Moreover, even though buyers switching costs are low, people hesitate to purchase from new brand. Because flight tickets are generally expensive and people give high concern for safety aspect, consumers tend to trust brands that have established for long period of time. It is also worth to pay some attention to the possible threat in the future from foreign competitors. The US government currently forbids foreign airlines to fly domestic routes to protect American jobs. If this restraint is lift off in the future, the competition will become much more intense when consumers are exposed to more options. Substitutes low Consumers can choose other mode of transportation such as car, bus, train or boat to substitute airplane. Advanced technology has made these form of transportation more efficient in domestic travels, especially over short distance. There is switching cost, in which time is the most concern factor, and it varies depending on available routes, time, budget and purpose of travel. Ocean transportation is the least attractive in term of speed concern. Fuel-efficiency technology has recently created more cost-advantage opportunity for ground transportation firms. However, plane is still the fastest and most convenient form of transportation. Beside, advanced technology which enable online business meeting (e.g. Skype) can be counted as substitutes for business-purpose travels. Supplier high The primary suppliers are airplane manufacturers and fuel. There are two dominant airplane manufacturers in the world: Boeing and Airbus, and they account for most of the market share in the worlds aircraft manufacture industry. Because of their monopoly power, they also hold strong suppliers bargaining power to the airline industry. It is very hard for airline companies to switch suppliers. Because planes are very expensive, most companies build long term contracts and have long term loan agreements with their suppliers. It is also extremely difficult for airline companies to establish their own manufacturers dued to the complexity and high capital cost of the products. Airline companies can integrate horizontally with each other to make larger airplane order for larger discount. Aviation fuel suppliers do not pose threat to the industry as the product is a commodity. Aviation fuel price depends on market forces and geographic-political factors. Buyer medium Even though airline services are quite standardized across the industry, which leads to low switching cost, buyers do not have much bargaining power over firms. Ticket websites such as Kayak or Travel ocity enable consumers to browse and compare flight information and prices easily, still people do not have negotiating power on price. On the other hand, transparency in price and readily available information allows airlines companies to easier extract consumer surplus by engaging in price discrimination. Popular routes which are offered by multiple airline carriers and relevant substitutes usually have competitive price, while long-distance flights that have limitation in schedules, hubs and available carriers usually overcharge consumers. Work cited Kost, John M. Effects of Airline Deregulation. [Mackinac Center]. October 19, 1988. Accessed March 18, 2015. https://www.mackinac.org/6358. Cederholm, Teresa. Lower Fuel Price, Merger Success Lift American Airlines in 2014. Successful Merger and Integration Efforts Boost American in 2014. February 24, 2015. Accessed March 18, 2015. https://marketrealist.com/2015/02/successful-merger-integration-efforts-boost-american-2014/. Cederholm, Teresa. The Airline Industrys Growth and Impact on Economic Prosperity. Share of Leisure and Business Travel. December 29, 2014. Accessed March 18, 2015. https://marketrealist.com/2014/12/leisure-business-travel-share-importance-us-travel-expenditure/. Davis, Marc. The Impact Of 9/11 On Business. Investopedia. September 6, 2011. Accessed March 18, 2015. https://www.investopedia.com/financial-edge/0911/the-impact-of-september-11-on-business.aspx 14 CFR Part 121 Air Carrier Certification. 14 CFR Part 121 Air Carrier Certification. Accessed March 18, 2015. https://www.faa.gov/about/initiatives/atos/air_carrier/. Don’t waste time! Our writers will create an original "Porters Five Forces and the Driving Force of Change" essay for you Create order

Distarctions of Cell Phone Use While Operating Motor Vehicles

Shannon Hudak Distractions of Cell Phone Use While Operating a Motor Vehicle Using cell phones while driving are not only dangerous but deadly. We have many distractions while driving, let alone the use of cell phones as well. In this day and age cell phones are used for a variety of things such as text-messaging, internet usage, watching television, e-mailing, faxes, games, and much more. Driving is a privilege, not a right. Many Americans take the technology we have today for granted. Once issued a drivers license it can be revoked for not obeying the laws and this is not the case with cell phone usage while operating motor vehicles. The thing we need to remember is that we all need to be responsible drivers to ensure not only our†¦show more content†¦We need to take a stand on this because so many lives are at stake when driving. Could you imagine getting a phone call that your child, mother, father, sister, brother, aunt, uncle, grandparent, niece, nephew, cousin, or any other family member, or friend had been hit by a driver while they were text ing? Most of us would say â€Å"Oh that will never happen to me† but, when it does, it makes you sit back and think. Anything can happen at any given moment in this life. What would you do if it was you driving and hit your own family member, or friend? It would be devastating. Most of us don’t think of situations that could occur and turn into a tragedy such as this. I have to give a lot of credit to The University of Utah and there research studies in effort to stop this widespread issue of cell phone use while operating a motor vehicle. The University of Utah has conducted many studies to raise the awareness on this epidemic. They have also developed a method to keep drivers from being distracted by cell phones. This method is called Key2SafeDriving. It installs without any tools in seconds. It is something you would have to put money into, but it is well worth it to keep your child or any other relative safe, as well as the other people on the road. It is $99.95 for each device including software for one cell phone. For each additional cell phone there is a $29.95 fee for software. They do offer a thirty-day money back guarantee. This device will alert

Launching a new business Free Essays

Apex International Ltd is a health care product company. The company is about to launch a new product in the market. The health care segment of this company is well renounced with products ranging from medical devices to surgical apparel including sterilization wrap, surgical gloves, surgical drapes and gowns and other medical devices. We will write a custom essay sample on Launching a new business or any similar topic only for you Order Now In an over all sense their products are targeted towards general health and hygiene. Therefore the vision statement would be a logical conclusion to launch a product in alignment with general health and hygiene. At present the mission statement of the company is to expand and occupy global market with a new and ingenious product. This is because to mark an impact in the global market the company must employ a strategy in the parameters of product selection that would enable the company to stand at a distinctive position. This distinctive position would help the company to attain a better market segment. For the purpose, along with a new and effective product, the company needs a group of motivated employees who would be able to execute the laid down strategy by the top management. The company is confident about its present group of employees and is certain that the motivated workers would be able to execute the planning without much specified difficulties. Thus the employees should 1. Follow the laid down principals and strategies closely 2. Understand the need of the potential customers clearly 3. Understand the preference of the potential customers 4. Provide customer service at the highest level Business description The company is set to launch a new product in the line of its existing item but in an updated and creative mode. The business would be spread over a large amount of markets around the world, and would venture into the markets of Asia, especially China. This would be well supported by market segments of other continents like North and South America, Europe and Australia and Oceania. The business would be controlled by the central headquarter situated in each of the countries of operation which would controlled by the Continent Head Office. The supreme negotiations would be done from headquarter situated in New York as it is a predominantly New York based company. Operation requirements    Operation requirements for this project are vivid and intricate. Firstly the management has to development a perfect schedule in terms of production in the line of future market potentials. Secondly, it should be looked upon that every aspects of the potential market segment is evaluated and measured. In the third phase of the operation requirement it should be noted to understand the need and priorities of the targeted customers. Lastly, a core unit should be developed to look into the motivation factors of the employees in the long run. 2. Vision Statement As the general consumer durable health and hygiene related products of Apex International Ltd includes mostly fabric related products or versatile materials that are developed from synthetic fibers it would be a logical conclusion to include a product like a fragranced panty liner for white discharge in this context. At present Apex International Ltd deals in products of personal care such as feminine pads, incontinence products and diapers it would be favorable for them to include panty liners for white discharge in this list of products specifically when the base material of the panty liner for white discharge is aligned with the base material of the other mentioned and related product which is non-woven fabrics. In the context of non-woven fabrics it would be interesting to mention that Apex International Ltd themselves is responsible for manufacturing non-woven fabrics in huge number of grades that are numbered around hundreds. As these grades of non-woven fabrics are already operational for various purposes like spill control, car covers, industrial fabrics, home furnishings and flexible packaging making room for an additional product like fragranced panty liner for white discharge would not include any further fixed or capital cost to the company. As for the market segment part the new product i.e. fragranced panty liner for white discharge would become a market leader world wide when a support system of a company like the Apex International Ltd is applicable. To begin with it would be applicable to mention the need of panty liner for white discharge with a brief detail of white discharge as an ailment. White discharge is regarded as a vaginal discharge that is considered as normal during and after the menstrual period and it varies from woman to woman. It has been estimated that during the period of ovulation the mucous products increase and it has been reported that after the interval of ovulation the amount of white discharge increases by about 30 times. The material is elastic and watery in nature and therefore it is prescribed by the doctors to use panty liners during this time frame of the cycle. One of the most difficult propositions of this material is that it has a very bad odor. Thus to access this market with a significant product the company needs to introduce a product that is 1. Well Fragranced 2. Extremely Hygienic 3. Highly dependable 4. Cost effective 3. Sales, Marketing and Finance management plan Executive summary The marketing strategy of the Apex International Ltd would be to develop a fragranced panty liner for white discharge. Developing a healthy and attractive fragranced panty liner for white discharge would never prove to be very difficult for the company as it is already in operative stage with relative products. Situation Analysis The potential, if the assumable market of this fragranced panty liner for white discharge is taken into consideration, could be substantially huge. It has been estimated that without the use of a normal panty liner for white discharge various symptoms may arise like discomfort, itching or even pain due to formation of fungal infection due to the amount of white discharge. Therefore, panty liners are essential and as it is consumer durable in nature therefore there is no chance of market being exhausted. Moreover, with a better campaigning with the focal point mentioning the betterment and advantages of a fragranced panty liner for white discharge would certainly help the company to occupy the existing market of panty liners by a huge margin. Marketing strategy At present the market segment of the world of panty liners are segregated among numerous companies of which a bulk of the companies represents China. These Chinese companies would be the prime target once Apex International Ltd takes over the manufacture of this new fragranced panty liner for white discharge and makes the product operational. The major reason of targeting China as the premium competitor would be the reason that these companies are basically marginally equipped to compete in the international market. Therefore they should be the primary concern as being the softest targets of all. Secondly, the advantage of the Chinese companies to be able to penetrate into low market segment could well be nullified with the campaigns concerning health issues. Once this has been done a bulk of the customers would be diverted towards the Apex International Ltd’s product of fragranced panty liner for white discharge as there are hardly any individual who would compromise in terms of health issues. This would have an additional advantage for the company. Once penetration is possible within the market occupied by the Chinese companies it would also be possible to inflate the market with other products of the Corporation. This would be a double advantage and a scope of further optimization of revenue. Thirdly, the other plus point enjoyed by the Chinese companies is the ability to penetrate into the markets of different nations all at the same time. Financial projections The amount of customers for this fragranced panty liner for white discharge would be by no means negligible. It has been estimated that about 9 million women visit the gynecological department or the general practitioners each year. This is just the estimation of the United States alone. It would be quite interesting to find out the actual number of potential customers for this new fragranced panty liner for white discharge world wide. That would mean a titanic amount of potential customers waiting for the fragranced panty liner for white discharge if marketing and campaigns are well executed by the Apex International Ltd. (Dollard, 2005) Implementation Control Thus once China is marginalized from the basic market of the fragranced panty liner for white discharge the rest of the market would fall in place with competition on the equal ground with other European, Australian and US companies. Here the main advantage of the Apex International Ltd would be the application of the fragranced panty liner which would drive away other potential competitors from the market and by the time any other company is able to formulate something new like the fragranced panty liner for white discharge the battle for supremacy over the market would belong won by the Apex International Ltd. Therefore it is obvious that a brand new product by the Apex International Ltd would be resulting into a clear winner not only in the local or national level but it is a cut made up for the international level and thus should be treated as a cut above the rest. Reference: Dollard, John Robert R; (2005); The White discharge Syndrome; New University Press; 21-25 How to cite Launching a new business, Essay examples

Elizabeth Barrett Browning Aurora Leigh An Essay Example For Students

Elizabeth Barrett Browning Aurora Leigh An Essay This bestial image places Aurora outside of the social norm and implies patriarchys view of the alterity of the woman artist. In addition, the image of the horse is a very sensual image. In Jungian psychoanalytic symbolism, the horse is linked with human sexuality. It suggests that women who take up the phallic pen and write are guilty of public sexuality and those who indulge in displays of public sexuality lie outside of Victorian society. Lady Waldemar, also views the woman artist in bestial terms, for she refers to Aurora as a lioness. (III.529) Therefore implying that in working as a writer, Aurora is behaving in a wild and uncivilised manner and that she needs to be secured with a trap. (III. 385) In other words, reined in like a wild horse and be forced to conform to Victorian/patriarchal values: to behave as women are expected to behave. Consequently, Lady Waldemar betrays her sex by conforming to the patriarchal view of the alterity of the woman artist: You stand outside,/You artist women, of the common sex. (III. 406/7) In other words, she appears to be suggesting the woman artist behaves like a man and not like a woman. Furthermore, in Lady Waldemars view the woman artist feeds her mind and thoughts, like a man but starves her body and feelings which are equated with femininity: Perhaps by what youre mulcted in, your hearts Being starved to make your heads. (III. 410/11) Lady Waldemar is not suggesting the woman artist is being viewed as a man, but simply displaying male characteristics. In other words, in contrast to Romneys view, Lady Waldemar believes Aurora is starving her heart and not feeling emotions which she equates with the feminine. Instead, Aurora is acting like a man and using her head: thinking and not feeling. Whilst Lady Waldemar accepts that the woman artist is undoubtedly also female, what she is implying is that the woman artist appears to be of both sexes, in other words: asexual. It is the woman artists asexuality that makes her different to the norm as it was perceived to be in Victorian society. It is precisely because Aurora and women artists like her, have entered into the male sphere that both Romney and Lady Waldemar perceive their otherness, their alterity to society which is uncompromising in its view of the sexes and the roles they are supposed to play. Therefore, as I have shown the alternity of the woman writer is shown through the speeches of both Romney Leigh and Lady Waldemar when expressing their views about Auroras writing endeavours. A woman artist is working in a mans world. As far as both Romney and Lady Waldemar are concerned this is an impertinence because in Victorian society working as a writer is viewed to be a mans prerogative. Romney believes women do not have the capacity to feel emotion for the wider and more important issues, whereas Lady Waldemar believes Aurora is focussing on her capacity to think, viewed as a male trait, as opposed to feeling, which Lady Waldemar sees as the female trait. Both Romney and Lady Waldemar use bestial imagery to describe Aurora suggesting she is outside of what is considered normal by Victorian society. Lady Waldemar perceives Aurora as neither man or woman, but as asexual because she appears to embody both sexes in one being. This difference to the norm is what defines the woman artist in her state or condition of otherness.