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1. Use Porter's Five Forces to evaluate the attractiveness of the Low Cost Carrier (LCC) industry in Europe.
o Threat of new entrants: There are barriers to entry in this industry; it isn't the easiest of industries to enter, you must have sufficient capital and assets to get into the airline industry. However, in 2003, there were an increasing number of new entrants.
o Threat of rivalry: There is high rivalry in this industry and slow growth. Most carriers do not succeed in this industry-only a few of them do, and they are all competing for market share. There is also high fixed costs and low product differentiation.
o Threat of Substitutes: There aren't many substitutes for long trips. Customers may take trains or travel by car, but neither of them are comparable to flying.
o Threat of Suppliers: There are a small number of firms in the supplier's industry, therefore the threat is high; and there aren't too many different suppliers of airplanes (Boeing and Airbus seem......

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Approximate Word Count: 424
Approximate Pages: 2 (250 words per double-spaced page)

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