Porter's Five Forces Model$-$Part $2$

Porter's Five Forces Model analyzes the competitive forces within the environment in which a company operates to assess the potential for profitability in an industry. It is important to understand these forces, because If the forces are strong, they increase competition; if the forces are weak, they decrease competition.

The goal of this activity is to see if you can identify each of the forces in Porter's model in a real$-$life scenario.

Instructions: Assume a shipping company is deciding whether to enter the commercial airline industry. Match each of the forces in Porter's Five Forces Model to the example that it depicts.

$$

Rivalry among

existing competitors

$2$

Threat of new

$3$

Supplier power

$4$

Buyer power

$5$

Threat of substitute

entrants products or services

Match each of the options above to the items below.

There are a limited number of plane and engine manufacturers from which to choose, and unionized workers are a large expense.

Airlines have price wars in an effort to attract new customers.

New airlines enter the market all the time, including the latest sky taxis.