Two companies, Boeing and Airbus, have long domi-nated the market for large commercial jet aircraft. To-day Boeing planes account for 50% of the worlds fleet of commercial jet aircraft, and Airbus planes account for 31%. The reminder of the global market is split between several smaller players, including Embraer of Brazil and Bombardier of Canada, both of which have a 7% share. Embraer and Bombardier, however, have to date focused primarily on the regional jet market, building planes of less than 100 seats. The market for aircraft with more than 100 seats has been totally dominated by Boeing and Airbus.The overall market is large and growing. In 2014, Boeing delivered 723 aircraft and Airbus delivered 620 aircraft. Demand for new aircraft is " "driven primarily by demand for air travel, which has grown at 5% per annum compounded since 1980. Looking forward, Boeing predicts that over the next 20 years the world economy will grow at 3.2% per annum, and airline traffic will continue to grow at 5% per annum as more and more people from the worlds emerging economies take to the air for business and pleasure trips. Given the anticipated growth in demand, Boeing believes the worlds airlines will need 37,000 new aircraft between 2013 and 2033 with a market value of $5.2 trillion dollars in todays prices.Clearly, the scale of future demand creates an enormous profit opportunity for the two main in-cumbents, Boeing and Airbus. Given this, many "

question: Use the 5-force model to evaluate the risk of entry into the commercial aircraft industry. Make sure you consider the barriers to entry discussed in the model. Discuss how the barriers across segments differ and the reasons for the difference.