Hi, I am looking for someone to write an article on collaborative commerce application in the travel industry Paper must be at least 1750 words. Please, no plagiarized work! We now provide a brief overview of each key force and will apply our analysis to the airline industry in the late twentieth/early twenty-first century. The threat of substitute products (1) refers to the close, competitive nature of similar products. Thus, the airline industry in one in which the products are nearly identical (flights from point A to point B) but the airlines try to differentiate one another through the services that they offer. Examples of this would be an onboard meal, a free checked bag or in-flight entertainment. The threat of new competitions (2) refers to the barriers and impediments which exist with respect to the entry of new competitors. Profitable businesses attract many new companies but in order to remain profitable, the industry must limit the entry of new competitors. As we shall see in our analysis of the deregulation of the American airline industry in the late 1970s, the opposite occurred. Porter’s Third Force explores the intensity of competitor rivalry (3) such as between Delta and American Airlines while Fourth Force the bargaining power of consumers (4). This is particularly relevant today in light of the numerous no-frills start-up airlines such as Ryan Air in the UK which give consumers more choice, and hence more bargaining power when purchasing a ticket. Finally, the bargaining power of suppliers (5) is particularly relevant and a considerable portion of this research paper will be devoted to the ramifications of rising oil costs on the profitability of airlines today. Our analysis now turns to a holistic overview of threat of new competitions (2) and the bargaining power of suppliers (5) as they have affected and continue to affect the global airline industry (Porter, 1979).In the context of the United States, the deregulation of the airline industry set the stage for the complete transformation of the American airline industry. . This brought the threat of new competitors to the fore with dramatic ramifications on the airline industry. .
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