Q/ Riyadh Air is a new Saudi carrier established by Public Investment Fund (PIF). The company aims to serve more than 100 destinations, connecting the Kingdom to the world. Riyadh Air is entering a mature industry with established players that dominate the market. It can be argued that the industry is somehow consolidated among a few major players such as Saudia, Turkish Airlines, Qatar Airways, and Emirates.

a. Describe the barriers to entry into this entry. Are they significant? What are the resources that Riyadh Air needs to overcome these barriers? Will these resources give it a competitive advantage?

b. Since this is a mature industry, describe the rivalry among established companies. How strong is the force, and what drives its level of strength? How will this force affect the business-level strategy that Riyadh Air should follow?