Using the Five Forces to Analyze an Industry

1
Using the Five Forces to Analyze an Industry

• Break into groups of 4 and discuss the following
• You are a group of experienced, but unemployed
  airline pilots considering establishing a
  regional airline using OHare airport as your
  regional hub. You would be offering a service
  from cities surrounding Chicago and you are
  confident you can gain access to landing slots at
  OHare. You are ready to make a presentation to a
  group of investors who may be willing to fund the
  leasing of 6 Boeing 737 aircrafts. Before they
  commit, the investors want you to undertake a
  thorough analysis of the nature of competition in
  the local market. Accordingly
• 1) Use Porters five forces analysis to carry out
  this analysis.
• 2) On the basis of this analysis, try to predict
  how your entry into the market might affect the
  intensity of competition.
• 3) Sketch out the basic strategy you intend to
  pursue to compete in this market.
• 4) If you were an investor, would you fund this
  venture?