Choose an Industry and Analyze the Competitive Forces Within the Industry Using the Five Forces Model.

Competition in an industry is a composite of competitive pressures operating in five areas of the overall market. Porter’s Five forces is a very popular way of looking at the industry in which a firm operates. It is commonly used tool to examine the industry competitiveness which helps determine the profit potential of firms existing in the industry.

The industry chosen for this question is the airline industry and the company chosen for analysis is Singapore Airline. SIA is a consistent industry leader in service, innovation, efficiency and branding. Furthermore, SIA has developed a reputation for being an industry trendsetter. The reason SIA enjoys its success and has earned many industries and travel awards are due to its dedication to customer service. For instance, the gourmet meals that are offered to all passengers are created by a panel of globally owned chefs.

The Five Forces model was developed by Michael Porter whom was from Harvard Business School in the late 1970s. This model is a simple but influential tool for the identification where power lies in a certain business situation by using the outside-in perspective (Johnson, Scholes & Whittington, 2008). This framework identifies five forces in the microenvironment that drive completion and threaten a company’s industrial economics approach. The concept is that the attractiveness of the market and its overall profitability can mainly be defined by market structure (Slater & Olson, 2002). The market which in turn influences the strategic behaviour of organizational success is therefore indirectly dependent on the market structure. “The awareness of these forces can help a company stake out a position in its industry that is less vulnerable to Attack” (Michael Porter, 1970).

As the model was developed in 1979, it is questionable if the forces are still relevant. It seems doubtful that this model, which is available for more than 35 years without any changes, is still relevant for analyzing the...