Bargaining power to suppliers: In such a case,
it is moderate for Delta airlines. And the reason being is that the
numbers of main suppliers who make aircraft are very few. These
main suppliers are Bombardier, Boeing and Airbus. This is why their
bargaining power is relatively high, but since Delta airlines is a
major buyer, it comes down to a moderate level.
Bargaining power to customers: It is high
because of the alternatives available for the customers. In this
age of digital world, many customers go to third party applications
and compare the rates of various airlines, compare all carriers and
book the cheapest one.
Threat of substitute: It is low, as there are
no direct substitute for Airlines . To some extent, Trains, Cars
and Buses can act as substitutes but they can’t be the exact
substitute, specially for long distance flights.
Threat of new entrant: It is very low, as it
requires huge financial investment to start a new brand. Apart from
that, the operating cost is massive and fulfilling the government
regulations is quite complex procedure.
Industry competition: It is high, because
there are many large airlines which fly from all the major
locations to various destinations, and more or less they offer
similar kinds of facilities, seats etc. Hence, customers have
options available and they opt for the best or cheapest one out of
them.