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Apart from analysing the macro-environment, the micro environmental factors must also be analysed. The Airline is one of the major industries in the world today and is greatly affected by Michael Porter's "Five Forces" model. These are internal factors that have a direct impact on the industry and a business has to understand the dynamics of its industries and markets in order to compete effectively in the marketplace. Porter defined the forces which drive competition, contending that the competitive environment is created by the interaction of five different forces acting on a business.

Internal Rivalry within the Industry

The central force of Porter's model is Internal Rivalry within the Industry. In case of the Airline industry, this is the most important force today, especially since the market is completely saturated.
First Mover Advantage
Ryanair were among the first movers because many ‘copycat' airlines have tried to follow suit. There are only two pan-European low......

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Approximate Word Count: 1719
Approximate Pages: 7 (250 words per double-spaced page)

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