Porter Five Model’s Analysis According to Michael E Porter model there are five forces that influence the attractiveness of an industry. These five forces are of the Suppliers, Potential entrants, Buyers, Substitutes and other Competitors in the industry (Johnson 2008 p) The suppliers have a strong bargaining power toward Airbus and Boeing due to the fact that there are very strong labor units in the industry. Furthermore there is a high switching cost for the companies due to the facts that the material they use are highly advanced and difficult to produce. The buyers, which are airlines like Emirates have benefitted from competition between Airbus and. This can also exert pressure the prices of aircrafts. There is also the threat of substitutes to what this industry is producing. We think that customers might choose to travel by train and bus nowadays, especially since there is a growing awareness of the airlines effect on the global environment. This might have an effect on the demand of which aircrafts should be produced. Especially we think this can have an impact for companies such as Airbus and Boeing because they produce big and powerful aircrafts. Finally we have the force of other competitors in the industry. As we have seen in this case there is a strong competition between Airbus and Boeing due to the fact that they produce similar aircrafts. There is a low differentiation between the products they produce.
