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You are to help with an analysis of the structure of the aviation industry and air cargo shipping sector in Brazil.. i.e Analyze how elements of the industry structure in the above industry sector (i.e., barriers to entry, power of suppliers, power of buyers, threat of substitutes, degree of rivalry) affect the performance of firms competing in this sector. The analysis of the industry should contain a discussion of the following elements:
Deliverable: Technology in question here is a low altitude supply/package/parcel delivery drone capable of using conventional and dirt/grass runways
, just in case you’ll need it for any reference.
a. Barriers to entry (e.g., economies of scale, switching costs, capital requirements, access to downstream complementary assets, government policy, expected
retaliation, etc.)
b. Power of suppliers (e.g., identification of key suppliers, performance of representative suppliers, presence of substitute inputs, supplier concentration, impact of inputs on cost or differentiation, threat of forward integration, etc.)
c. Power of buyers (e.g., buyer concentration vs. firm concentration, buyer volume, buyer switching costs, threat of backward integration, price sensitivity, product differences, impact on quality perceptions,)
d. Threat of substitutes & Degree of rivalry (e.g., substitutes already available in the market, likely substitutes, number of competitors, distribution of market share etc.)
It is important that you examine the extent to which the broader business environment affects the industry structure. For instance, government regulation may result in higher barriers to entry, buyers may exhibit different preferences and different levels of price sensitivity, the economic environment may provide weaker/stronger incentives for the development of relevant suppliers, state-owned firms may dominate the industry and shape competition, etc.
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