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Michael Porter's five forces model is a strategic framework by which an attempt is made to predict how an industry, behaves, grows and responds within a competitive environment. In his own words the creator of the concept offers an insight; "The five forces determine the industries profitability because they influence the prices, costs, and required investments of firms in an industry – the elements of return on investments ." It is the aim of this essay to apply Porter's model to Europe's rapidly growing budget airline industry. Finding it's liberalisation in 1997 Europe's domestic airline industry is relatively immature in comparison to its North American equivalent. A few years shy of maturity the industry currently resides in a business sphere of intense competition. As far as Europe is concerned the pioneering embrace of budget air travel is essentially an Anglo-Irish endeavor, however Europe now has around 50 low-budget carriers. Testament to the aggressively competitive......



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Title: Five Forces Framework
Approximate Word Count: 793
Approximate Pages: 4 (250 words per double-spaced page)

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