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A graphical representation of Porter's five forces. Porter's Five Forces Framework is a method of analysing the competitive environment of a business. It draws from industrial organization (IO) economics to derive five forces that determine the competitive intensity and, therefore, the attractiveness (or lack thereof) of an industry in terms of its profitability.
A value chain is a progression of activities that a business or firm performs in order to deliver goods and services of value to an end customer.The concept comes from the field of business management and was first described by Michael Porter in his 1985 best-seller, Competitive Advantage: Creating and Sustaining Superior Performance.
Specifically, the load factor is the dimensionless ratio of passenger-kilometres travelled to seat-kilometres available. For example, say that on a particular day an airline makes 5 scheduled flights, each of which travels 200 kilometers and has 100 seats, and sells 60 tickets for each flight.
In the commercial aviation sector, just about every group in the aviation industry chain—airports, airplane manufacturers, jet engine makers, travel agents, and service companies, to name a few—turns a profit. However, airline companies whose primary focus is on passenger flights have great difficulty making a profit
The Profit pools is a strategy model that can be used to help managers or companies focus on profits, rather than on revenue growth. [1] The method was conceived by Orit Gadiesh and James L. Gilbert, both consultants at Bain & Co. presented the following definitions: "the total profits earned at all points along the value chain of an industry.
Emirates Airbus A330-200 (A6-EKS) landing at London Heathrow Airport. The established network carriers in Europe, North America and Australasia, i.e. Air France–KLM, Lufthansa, British Airways, Air Canada, Delta Air Lines, American Airlines, Qantas and Air New Zealand, perceive Emirates' strategic decision to reposition itself as a global carrier as a major threat because it allows air ...
The Supply Chain Operations Reference (SCOR) model is a process reference model originally developed and endorsed by the Supply Chain Council, now a part of ASCM, as the cross-industry, standard diagnostic tool for supply chain management. [1]
A global value chain (GVC) refers to the full range of activities that economic actors engage in to bring a product to market. [1] The global value chain does not only involve production processes, but preproduction (such as design) and postproduction processes (such as marketing and distribution).