Market Segmentation & Product Brand strategy Essay

Market Segmentation & Product Brand strategy - Essay Examplehe delivery of orders (planes) and financing puzzles have reduced the win for both the above suppliers (Tuggle 2009) however, the intervention of IATA in the reducing of supply chain costs in the US flight path industry helped the industry to save rough $17 billion in supply chain costs helping the industry to face the set up of the global crisis (Clark 2011) b) cater of customers customers in the airline industry can choose among the industrys firms, nevertheless if the availability of choices has been reduced due to the increase of M&A (see Graph 1 below) c) industrys competition competition in the US airline industry has been limited because of the expansion of mergers and acquisitions the specific problem is clear in Graph 1 below in 2010, the number of firms in the US airline industry has been reduced, allowing the existing firms to set easier their rules regarding the industrys prices and priorities.On the othe r hand, from 2007 onwards, the industrys profits have been negatively influenced because of the global crisis in 2009, the specific industry reported a loss of $4 billion (Bozzo 2010) in 2010, the industrys profits helped the airlines to cover the relevant loss even part d) substitute products substitute products are a common phenomenon in the airline industry. Customers who cannot afford to pay the uplifted prices of well known airlines, can choose among low-fare airlines even with lower quality of services (Zacks Equity search 2011), e) unseasoned entrants the operational costs of firms in the airline industry can be high new entrants are difficult to threaten the industrys existing firms. However, the increase of the power of existing competitors through and through mergers could be considered as a major threat for the industrys firms.The view that supplier power is somewhat weak reflects the current status of competition in the airline industry. Indeed, Airbus and Boeing are the key suppliers in the particular