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Strategic groups

Aviation industry is a highly competitive industry because of which it is difficult to earn high returns in this sector. Below are the major reasons for the high competition in the low- cost carrier airlines: Very little scope for differentiation between competitors products and services Aviation is a mature industry with very little growth. The only way to grow is by stealing away customers from competitors Suppliers of aircrafts are the same, i.e., Boeing and Airbus. Hence suppliers bargaining power is high Switching cost of customers is high for low cost carriers, i.e., there is no brand loyalty

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