Individual Exercise Essay Example | Topics and Well Written Essays - 500 words

Individual Exercise - Essay Example On the other hand, not all investors are able to enter in this market because of the huge amounts of capital that is required in order to start up a company. It is for this reason that the threat of new entrants in this market is moderate. The bargaining power of customers also affects the nature of competition in this market. Customers in this case are airlines who purchase the commercial jets. These companies have no substitute product and therefore have to buy aircraft. This makes the bargaining power of customers to be low. The level of competition is high in this market is because of new entries in the market who have decreased their prices significantly. This has in turn increases the pricing pressure on a company like Boeing. For instant, Boeing 737MAX-7 with a capacity of 130 passengers is listed at $85 million, while Bombardier’s largest C series model with the same capacity goes for $71 (Forbes, 2014). Suppliers in this industry are seen to be having a low bargaining power because their customers only include aircraft manufacturers. These manufacturers are few as compared to the number of suppliers in the market. Fly Dubai is in its development phase. Flydubai is committed to making air travel affordable for its customers (Flydubai, 2014). This gives them the opportunity of attracting many customers and retaining them. The threat that this airline faces is high competition in this market from more established airlines that operate worldwide. The fact that it is low cost brings out the threat of not being able to cater for the operating costs incurred by the company. The competitive structure of DRAM market is characterized by many competitors who have expanded their capacity into the production of semiconductor chips. For this reason, companies need to be innovative in order to succeed in this market. There is also no barrier to enter into this market which encourages many companies to enter this market.