Five Forces Framework

Michael Porter's five power models are a strategic framework for predicting industry, behavior, growth and responsiveness in a competitive environment. In his own words, the creator of this concept provides insight; "As these five powers affect the factors of the company's required investment in the price, cost, and industry - factors in the industry, We will decide profitability. " The purpose of this paper is to apply Porter's model to the fast-growing low-cost airline industry in Europe.

Porter's Five Forces Framework is a tool for analyzing company competition. It draws five powers from industrial organization (IO) economics to determine the intensity of competition, thereby determining the appeal (or lack of appeal) of the industry from a profitable point of view. It can help you develop product strategies and roadmaps

Evaluate the appeal and competitiveness of the industry. Five Forces Framework is the perfect tool to analyze this situation. Michael Porter's Five Forces framework was developed to evaluate the appeal of various industries (potential for profit) (Johnson et al. (2009)). As expected, the demand for production capacity is increasing (Appendix (3)) Pay attention to the fact that we have passed corporate news and economic prospects and issued corporate bonds to raise funds in the business environment I will.

Porter developed five power frameworks in response to popular SWOT analysis at that time, and he discovered that both analyzes lacked rigor and uniqueness. Porter's five power framework is based on the paradigm of structure - behavior - performance in the economics of industrial organizations. From becoming more profitable for companies, it has been used to solve various problems, including helping the government stabilize the industry. Other porter strategy tools include value chains and general competitive strategies