Provide an example of one of the forces in Porter's Five Forces Model Assignment

Provide an example of one of the forces in Porter's Five Forces Model - The threat of the entry of new competitors - Assignment Example American Boeing has 70% of the worldwide market share and is a prime manufacturer of engines and aircrafts. Remaining 30% is shared by Airbus. Boeing has established its market and brand name over the years and cannot be threatened by new entrants or competitors that easily. We can analyze that because of the high capital and technology requirement of the business, the entry barriers are quite high. The high entry barriers show that the threat of new entrants and thus for any competitors for Boeing is quite low. Any company to enter the industry and to compete with Boeing has to be financially stronger than Boeing. It has to bring in with it new and highly advanced technology to give fierce competition to the existing and established company. The initial investment or the startup cost in the airline industry is very high. An 800-seat plane that Boeing manufactures requires an investment of more than $10 billion. Competitors require huge costs and budget for research and development a nd production of the differentiated and unique product that Boeing produces. The threat of new competitors for Boeing is quite low it is because barriers of the knowledge and expertise required for the business as well.