Buy custom Strategic Management : tourism industry porter five forces
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| Topic: |
Business
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| Number of pages / Number of words: |
9 / 2481 |
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As well as this, these particular airlines pursued an almost identical pricing policy including very high fares for Business Class Seats. Lower fares were also on offer, however these had restrictions attached to them to prevent business class travellers using them.
As a result of these policies it made it much easier for Low Cost Carriers to grow in Europe and for them to have a dramatic effect on the economics of the long established firms...
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According to Oliver (2007) the British Airways, lost approximately 250 million pounds on its European network during its 2002/2003 financial year.
Substitution:
Porter (1980) argues that disturbance to the competitive equilibrium set up by the long established firms can come from two possible sources, the first of these being that of substitution...
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