Industry Analysis (Airline) Emirates Airline

Industry Analysis (airline) Emirates Airline Company is an airline based at the Dubai International Airport in Dubai. It is a subsidiary of the Emirates group, which is a public international conglomerate that has its base in Dubai. Emirates airlines came into existence in the mid 1980s owing to the fact that the Gulf Air cut back its services to Dubai (Wakeling, 2011) It is among the largest airlines in the Middle East that operates with a large number of flights.

It operates about four of the world's longest non-stop flights that are commercial from Dubai to Los Angels, Dallas, Houston, and San Francisco. It is wholly under the ownership of the government of Dubai directly under Investment Corporation of Dubai. It has built a strong brand name for itself as a leader in the aviation industry. This is particularly due to the fact that its services are excellent, it has grown rapidly over the years and it is consistent in terms of the profits realized.

The Airline Industry The Airline Industry is among the most competitive and growing industries worldwide, reason being it leads to economic growth, international investment, world trade and tourism. This industry is categorized as among the fastest expanding sectors in the world. The industry is affected by political factors, trade and economic growth.

An example of political factors effect on the industry is terrorism attacks that make people avoid visiting countries that have been attacked.oli price can be an economic factor since the rise in global prices have rendered the industry un profitable. The five forces that impact the airline industry are; Threat on new entrants A new entrant is a threat to the existing company since it might come with better services than the one offered by the existing company.

In the Airline industry this threat is high since the barriers that are set on entry are too high. These include a huge budget that is required to start a new airline. Another barrier is brand name, where the existing companies have created a brand name and hence it would be difficult for a new airline to build a name for itself. Furthermore some of the existing companies already have loyal customers.

Bargaining power of suppliers Suppliers have an effect on the industry through their ability to raise prices or reduce the quality of goods or services they provide.

There are very few airline suppliers globally these are Airbus and Boeing this means that the suppliers have a high power since they are limited and hence control the market since the demand for their manufactured products is high (Rahman,2010.) Bargaining power of Buyers The industry is affected by the buyers through their ability to bargain for more services that are of high quality. The buyers' power in this industry is high since the airline industry serves many passengers.

The costs of switching airlines are low and the passengers have a large option base. Threat of a substitute service or product This threat can be viewed on a regional and international point. This threat in the regional airlines is high since passengers may opt to drive their cars, or even board trains.