The paper 'Industry Analysis - the Airline Industry in the United Kingdom" is a good example of a management case study. The airline industry in the United Kingdom is one of the primary industries as evidenced by its contribution of over 18 Billion Pounds to the Gross Domestic Product (GDP). Besides, the industry also provides employment to over 230,000 people (Schimmel, 2014). The airline industry in the United Kingdom is aimed at facilitating the transport of goods and passengers at the domestic and international stage. The industry’ s contribution to the GDP is attributed more to passenger transport than cargo transport.
The market sectors in the industry are divided into two broad sectors based on scheduling and nature of service. Scheduling is further subdivided into non-scheduled and scheduled while the nature of service comprises of domestic or global services. Scheduled services are those that have a set routine or operational timetable while non-scheduled are other air transport services that do not operate under a preset routine. Domestic services are the flights that operate within the United Kingdom while international or global services are the flights that operate between the United Kingdom and other nations outside the UK.
The UK airline industry consists of more scheduled services compared to non-scheduled services. This paper aims at analyzing the airline industry in the UK using Porter’ s five forces model. Porter’ s Five Forces Model is an important tool in analyzing the operating external environment for the industry (Porter, 1979). Porter’ s Five Forces Model Michael Porter developed Porter's Five Forces Model in 1979 as a tool for studying competition in market environments and industries by picking individual forces that shape these environments (Ahlstrom & Bruton, 2010).
A major factor that contributes to using this model in the analysis is the external factors that have recently affected the airline industry in the UK including a rise in operating costs, decrease in passenger traffic, increase in the price of fuel, increased competition, and an increase in maintenance and landing costs.
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Porter, M., 1979. ‘How Competitive Forces Shape Strategy,’ Harvard Business Review.
Schimmel, M., 2014. Communication in the U.K. Budget Airline Industry. Hamburg: Diplomica Verlag.
Smith, O., 2013. ‘British Airways Is Using Cheaper Fares to Compete With Budget Airlines,’ The Telegraph.