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Unformatted text preview: -Barrier to entry-No treat to entry Supply – Commodities (Low)-Fuel – large competition so low bargaining power – Jet fuel is all same so no differentiation – Highish. .-Packaging-Labor – Union, high. No union, low-Planes Tech-Buyers-Corporations 50% Highish-Small Bus / Private 50% Low-Buying Groups, High a. Conflicts b. Needs are different Substitution - Low-Fax-Internet a. Email – bad b. Online shopping - good Conclusion-Profitability low-Huge economies of scale due to high fixed costs Therefore the company is not profitable-747 12sits wide 24 DC-8 6sits wide 14 DC-9 747s is 4 times bigger than DC-8s Fuel consumption is much lower than DC-8s...
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This note was uploaded on 09/08/2010 for the course BUS 189 at San Jose State.