Market Segmentation & Product Brand strategy Essay

Market Segmentation & Product Brand strategy - stress Examplehe delivery of orders (planes) and financing problems have reduced the profits for both the above suppliers (Tuggle 2009) however, the intervention of IATA in the reduction of supply chain be in the US airline exertion helped the industry to save about $17 billion in supply chain costs helping the industry to face the effects of the global crisis (Clark 2011) b) power of customers customers in the airline industry can choose among the industrys firms, even if the availability of choices has been reduced due(p) to the increase of M&A (see Graph 1 below) c) industrys competition competition in the US airline industry has been limited because of the working out of mergers and acquisitions the specific problem is clear in Graph 1 below in 2010, the number of firms in the US airline industry has been reduced, allowing the existing firms to learn easier their rules regarding the industrys prices and priorities.On the other hand, from 2007 onwards, the industrys profits have been negatively influenced because of the global crisis in 2009, the specific industry reported a loss of $4 billion (Bozzo 2010) in 2010, the industrys profits helped the airlines to cover the relevant loss even partially d) substitute products substitute products ar a common phenomenon in the airline industry. Customers who cannot afford to pay the high prices of well known airlines, can choose among low-fare airlines even with lower quality of function (Zacks Equity Research 2011), e) new entrants the operational costs of firms in the airline industry can be high new entrants are difficult to expose the industrys existing firms. However, the increase of the power of existing competitors through mergers could be considered as a major threat for the industrys firms.The scene that supplier power is somewhat weak reflects the current status of competition in the airline industry. Indeed, Airbus and Boeing are the key suppli ers in the particular