Explain the effect of Porter’s five forces on air courier industry.

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Answer 1

Question

Chapter 1, Problem 1QE

To determine

Explain the effect of Porter’s five forces on air courier industry.

Expert Solution & Answer

Explanation of Solution

Porter’s five forces determine the competitive position of an organization. The effect of five forces on air courier industry is listed as follows:

Bargaining power of suppliers: Suppliers include supplier of equipments, aircrafts, labor, and pilots. Since there are a few companies, bargaining power of suppliers is low.
Bargaining power of customers: Large business customers can negotiate heavily. Thus, bargaining power of customers is high.
Rivalry amongst competitors: There is a high rivalry amongst air courier companies. A few air courier companies occupy a significant amount of market share. Thus, there is high competition amongst those companies.
New entrants: The cost of equipments and infrastructure is high. Therefore, it is not easier for businesses to enter.
Threat of substitute products: Threat of online transmission for intangible objects is high. Vessel routes are generally used for bulky commodities; also, sea route is not suitable for every destination point and may require other modes of transport which consume much time. Thus, substitute for the air courier companies is relatively low.

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Answer 2

Question

Chapter 1, Problem 1QE

To determine

Explain the effect of Porter’s five forces on air courier industry.

Expert Solution & Answer

Explanation of Solution

Porter’s five forces determine the competitive position of an organization. The effect of five forces on air courier industry is listed as follows:

Bargaining power of suppliers: Suppliers include supplier of equipments, aircrafts, labor, and pilots. Since there are a few companies, bargaining power of suppliers is low.
Bargaining power of customers: Large business customers can negotiate heavily. Thus, bargaining power of customers is high.
Rivalry amongst competitors: There is a high rivalry amongst air courier companies. A few air courier companies occupy a significant amount of market share. Thus, there is high competition amongst those companies.
New entrants: The cost of equipments and infrastructure is high. Therefore, it is not easier for businesses to enter.
Threat of substitute products: Threat of online transmission for intangible objects is high. Vessel routes are generally used for bulky commodities; also, sea route is not suitable for every destination point and may require other modes of transport which consume much time. Thus, substitute for the air courier companies is relatively low.

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Answer 3

Question

Chapter 1, Problem 1QE

To determine

Explain the effect of Porter’s five forces on air courier industry.

Expert Solution & Answer

Explanation of Solution

Porter’s five forces determine the competitive position of an organization. The effect of five forces on air courier industry is listed as follows:

Bargaining power of suppliers: Suppliers include supplier of equipments, aircrafts, labor, and pilots. Since there are a few companies, bargaining power of suppliers is low.
Bargaining power of customers: Large business customers can negotiate heavily. Thus, bargaining power of customers is high.
Rivalry amongst competitors: There is a high rivalry amongst air courier companies. A few air courier companies occupy a significant amount of market share. Thus, there is high competition amongst those companies.
New entrants: The cost of equipments and infrastructure is high. Therefore, it is not easier for businesses to enter.
Threat of substitute products: Threat of online transmission for intangible objects is high. Vessel routes are generally used for bulky commodities; also, sea route is not suitable for every destination point and may require other modes of transport which consume much time. Thus, substitute for the air courier companies is relatively low.

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Answer 4

Question

Chapter 1, Problem 1QE

To determine

Explain the effect of Porter’s five forces on air courier industry.

Expert Solution & Answer

Explanation of Solution

Porter’s five forces determine the competitive position of an organization. The effect of five forces on air courier industry is listed as follows:

Bargaining power of suppliers: Suppliers include supplier of equipments, aircrafts, labor, and pilots. Since there are a few companies, bargaining power of suppliers is low.
Bargaining power of customers: Large business customers can negotiate heavily. Thus, bargaining power of customers is high.
Rivalry amongst competitors: There is a high rivalry amongst air courier companies. A few air courier companies occupy a significant amount of market share. Thus, there is high competition amongst those companies.
New entrants: The cost of equipments and infrastructure is high. Therefore, it is not easier for businesses to enter.
Threat of substitute products: Threat of online transmission for intangible objects is high. Vessel routes are generally used for bulky commodities; also, sea route is not suitable for every destination point and may require other modes of transport which consume much time. Thus, substitute for the air courier companies is relatively low.

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Answer 5

Chapter 1, Problem 1QE

To determine

Explain the effect of Porter’s five forces on air courier industry.

Expert Solution & Answer

Explanation of Solution

Porter’s five forces determine the competitive position of an organization. The effect of five forces on air courier industry is listed as follows:

Bargaining power of suppliers: Suppliers include supplier of equipments, aircrafts, labor, and pilots. Since there are a few companies, bargaining power of suppliers is low.
Bargaining power of customers: Large business customers can negotiate heavily. Thus, bargaining power of customers is high.
Rivalry amongst competitors: There is a high rivalry amongst air courier companies. A few air courier companies occupy a significant amount of market share. Thus, there is high competition amongst those companies.
New entrants: The cost of equipments and infrastructure is high. Therefore, it is not easier for businesses to enter.
Threat of substitute products: Threat of online transmission for intangible objects is high. Vessel routes are generally used for bulky commodities; also, sea route is not suitable for every destination point and may require other modes of transport which consume much time. Thus, substitute for the air courier companies is relatively low.

Answer 6

Chapter 1, Problem 1QE

To determine

Explain the effect of Porter’s five forces on air courier industry.

Expert Solution & Answer

Explanation of Solution

Porter’s five forces determine the competitive position of an organization. The effect of five forces on air courier industry is listed as follows:

Bargaining power of suppliers: Suppliers include supplier of equipments, aircrafts, labor, and pilots. Since there are a few companies, bargaining power of suppliers is low.
Bargaining power of customers: Large business customers can negotiate heavily. Thus, bargaining power of customers is high.
Rivalry amongst competitors: There is a high rivalry amongst air courier companies. A few air courier companies occupy a significant amount of market share. Thus, there is high competition amongst those companies.
New entrants: The cost of equipments and infrastructure is high. Therefore, it is not easier for businesses to enter.
Threat of substitute products: Threat of online transmission for intangible objects is high. Vessel routes are generally used for bulky commodities; also, sea route is not suitable for every destination point and may require other modes of transport which consume much time. Thus, substitute for the air courier companies is relatively low.

Answer 7

Chapter 1, Problem 1QE

To determine

Explain the effect of Porter’s five forces on air courier industry.

Answer 8

Expert Solution & Answer

Explanation of Solution

Porter’s five forces determine the competitive position of an organization. The effect of five forces on air courier industry is listed as follows:

Bargaining power of suppliers: Suppliers include supplier of equipments, aircrafts, labor, and pilots. Since there are a few companies, bargaining power of suppliers is low.
Bargaining power of customers: Large business customers can negotiate heavily. Thus, bargaining power of customers is high.
Rivalry amongst competitors: There is a high rivalry amongst air courier companies. A few air courier companies occupy a significant amount of market share. Thus, there is high competition amongst those companies.
New entrants: The cost of equipments and infrastructure is high. Therefore, it is not easier for businesses to enter.
Threat of substitute products: Threat of online transmission for intangible objects is high. Vessel routes are generally used for bulky commodities; also, sea route is not suitable for every destination point and may require other modes of transport which consume much time. Thus, substitute for the air courier companies is relatively low.

Answer 9

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Answer 10

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Answer 11

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Explain the effect of Porter’s five forces on air courier industry.

Explain the effect of Porter’s five forces on air courier industry.

Explanation of Solution

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