Korean Airline Porter's 5 Forces Coursework Example | Topics and Well Written Essays - 500 words

Korean Airline Porters 5 Forces - Coursework ExampleThe customers of KAL include passengers, corporate organizations as vigorous as different actors in the aircraft industry among another(prenominal)s. The table below highlights the industry analysis that constitutes Porters five forces that can impact on its operations.KAL has a total of 149 aircraft and is the largest in terms of consumers and it specializes in pass services in the following sectors Passenger services, components and parts, aerospace services as well as cargo (KAI). However, in that location are other competitors in the aviation industry which include the following Asiana Airlines which is the second largest airline in Korea, currently operating a total of 83 aircraft, on top of that, there are in like manner five Low Cost Carriers (LCC) Jeju Air, Jin Air, Air Busan, Eastar Jet, and TWay Air. Though KAL is the largest airline, the existence of rivalry among the other existing players cannot be ignored. It pos es a threat to the airline.As noted above, there are six other competitors in the aircraft industry which entails that the threat of substitutes is high. For instance, In 2013, 4.9 million international travelers, or 9.6% of all international travelers, use LCCs, (KAI). The number of passengers using LCCs has dramatically increased which means that they can switch from KAL to these low cost planes. On the other hand, the consumers have the power to determine prices since they can easily switch to low cost careers and this in turn can force Korean Airlines to review its prices downwards.According to KAI, the bargaining power of suppliers is low as a result of the fact that all U.S. aerospace exports are duty-free as of March 15, 2012, and as a result of the implementation of the Korea-U.S. FTA (KORUS). This means that this trade agreement between the two countries is specifically meant to protect the interests of both(prenominal) nations. Prices are regulated at acceptable levels