Competitive Forces: Connexion by Boeing

1
Competitive Forces Connexion by Boeing

• Andy Fu
• BUS 311
• Netlab-2

2
What is Connexion?

• Connexion is
• A mobile information
• services provider
• High speed Internet
• A data service to
• in-flight aircrafts

3
Porters 5 forces

• Traditional rival within your industry
• Threat of new entrants into your market
• Customers bargaining power
• Suppliers' bargaining power
• Threat of substitutes products from other
  industries

4
Traditional Rivals

• Tenzing
• Provides Internet using seat-back phone
  technologies
• Slow, sluggish
• High Cost

5
Threat of new entrants

• Verizon Airfone
• TriaGnoSys
• http//www.airfax.com/airfax/releases/showrelease.
  asp?id1532
• http//www.airfax.com/airfax/releases/showrelease.
  asp?id1718

6
Customers Bargaining Power

• Cost Less than a four-minute call
• Speed Broadband similar at home/office

7
Suppliers Bargaining Power

• Access airlines reservation system
• Real-time transfer of maintenance requests
• Receive satellite TV and latest weather data

8
Threat of Substitute Products

• Using cell phone wireless connection
• Lower prices
• Better conenction

9
My Diagnosis

• More and more companies will implement in-flight
  online services
• Will be extremely popular, mainly to business
  people
• Connexion should be top dog in this industry