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Essay's paper info
| Topic: |
Business
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| Number of pages / Number of words: |
9 / 2242 |
Essay's paper body
- Three major players covering 40 % of the market
- Margin decrease from 1980s-1990s
- Rationalization trend
- High number of outlets per capita
High Low/Medium High Medium High
Table 2 Porter's five forces
Overall the industry profitability seem to be low to medium due to the high threat of new entrants, especially through online channels and the related threat of forward integration from the major suppliers...
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High degree of competition within the industry has lowered margins substantially, and new online entrants as well as airlines cutting the “middle man†predict a continued pressure on margins.
Strategy
Flight centre has a stated policy of 20 % annual profit growth. This is evidenced by an aggressive growth policy through acquisitions as well as organic growth; domestically and internationally...
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