Activity 6 Directions: Cut out pictures from old magazine and paste it on the space provided for, or otherwise you can draw a picture that best describe each Porter's Five Forces. 1. Explain your answer on the opposite side. 2. Name at least 2 companylfirm whom you think practices these porter's five forces. The bargaining power of suppliers (Supplier Power) in the airline industry can be considered very high. When looking at the major inputs that airline companies need, we see that they are especially dependent on fuel and aircrafts. These inputs however are very much affected by the external environment over which the airline companies themselves have little control. The price of aviation fuel is subject to the fluctuations in the global market for oil, which can change wildly because of geopolitical and other factors. In terms of aircrafts for example, only two major suppliers exist: Boeing and Airbus. Boeing and Airbus therefore have substantial bargaining power on the prices they charge. Buyer power 2- Bargaining power of buyers (Buyer Power) in the airline industry is high. Customers are able to check prices of different airline companies fast through the many online price comparisons websites such as Skyscanner and Expedia. In addition, there aren't any switching costs involved in the process. Customers nowadays are likely to fly with different carriers to and from their destination if that would lower the costs. Brand loyalty therefore doesn't seem to be that high. Some airline companieslwebsites such as these two (Skyscanner and Expedia) are trying to change this with frequent flyer nrnnrnmc aimed at rnulnrr'linn nllcfnmnrc fhnf