Frontier Airlines: Strategic Analysis Using Porter’s Five Forces

This report provides a strategic analysis of Frontier Airlines within the passenger airline industry, utilizing Porter's Five Forces framework to assess the industry's attractiveness. It examines competitive rivalry, the threat of new entrants, the power of suppliers, the power of buyers, and the threat of substitute products. The analysis highlights Frontier's competitive strategies, including cost-saving measures, route expansion, and service enhancements, in response to competition from airlines like Western Pacific and United Airlines. The report concludes that the airline industry is attractive for Frontier due to opportunities for expansion into new markets, cost-effective service delivery, and technological advancements, all contributing to increased customer demand and satisfaction. Desklib offers this report as part of its collection of solved assignments for students seeking study resources.

Strategic Analysis
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Table of contents
MAIN BODY..................................................................................................................................3
1.Undertaking Porter’s Five Force analysis of the passenger airline industry and analyzing the
industry to be attractive or not.....................................................................................................3
REFERENCES................................................................................................................................9
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MAIN BODY
1.Undertaking Porter’s Five Force analysis of the passenger airline industry and analyzing the
industry to be attractive or not
Frontier Airlines is serving the passengers with the best of their services by fulfilling their needs
and requirements at large scale. This is helping the airline industry by creating value for teh
services which are being served to the passengers’ at large scale. Frontier Airlines is creating
value for the services since its old and new transformations (Frontier Airlines, 2013). There are
some major former Frontier major officials who have been implementing different strategies for
the growth and development of the business of Airlines. This also helped in ensuring that the
strategies which were framed included the aspects of the growth from the older services to the
newer ones and changes were also observed in the patterns of Airlines which were being
followed.
The business strategy of Frontier Airlines was changed which as the officials made the
changes in the strategies. The Airline is also keeping it strict with the services which are
provided to the passengers’ at large scale and this has included the first class cabins and clubs.
The officials regularly took control and investigated the changes which were to be considered at
large scale and this helped in knowing that Frontier was not taking any decision which affected
the growth and development of the Airlines industry Toolkit, (2019). When the strategies of
business were changed, profits were seen as growth factor for the Frontier Airlines. For detail
understanding of the Frontier Airlines Porter’s Five Force Analysis if being done which will help
in knowing that the Airlines Industry is growing at large pace and in effective manner.
The Porter’s Five Force Analysis for Frontier Airlines is described as –
Competition in the Industry – Frontier Airlines has many competitors in the Airline industry
which are competing against serving the best services to the passengers and for the whole Airline
Industry. Frontier is facing the competition from the Western Pacific and United Airlines. This
has made difficult the process of growth and development of Frontier business at large scale
within the industry Rotondo and et.al., (2019). The operational strategies of other airlines
became the competition for the operations which were being handled and worked for the Frontier
Airlines. Constant threat to the Frontier Airlines is the operations which were undertaken by the
Western Pacific Airlines (WestPac). WestPac and Frontier became strong competitors for each
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other as the struggle between both the airlines grew intense. This was because of marketing the
same products and services to the passengers’ or customers in the market. Apart from this the
competition between both the airlines grew more when there were cost factors which were
involved at large scale affecting their growth and development in the industry. There were
higher operating costs which affected the operations of the airlines. The disadvantages of higher
operating costs from DIA made Frontier’s management focus on lowering the other costs which
made the airline more competitive.
Therefore, cost saving advantages made Frontier to the route of increasing the scales of
becoming more competitive in the airlines industry, Frontier Airlines gained the competitive
edge so that it is able to compete with the competitors which were WestPac and United Airlines
Baxter, (2019). Therefore, Frontier Airlines dominated certain routes and by providing more
seats and more flights for the passengers’ at large scale and to make them available all types of
facilities and services which are being served to the customers and passengers and this also
encouraged competition in the Airlines Industry.
Potential of New Entrants into the Industry – With new entrants and increase in competition in
the Airlines industry, Frontier Airlines started to bring back the routes which were once
considered less profitable. There was always threat of new entrants in the airlines industry and
this created problem for the growth and development of Frontier at large scale. The main aim of
the airlines industry is that to serve the best services and facilities to customers and passengers so
that they are attracted and engaged in grabbing the services at large scale Khurram and et.al.,
(2020). This created problem for the Frontier Airlines as new entrants were competing with the
same products and services at large scale. This created difficulties for Frontier business to
analyze and evaluate the aspects of growth and development in such manner that they are still in
competition with the other Airlines and is providing all services in better manner.
The threat of new entrants created major problem for Frontier as there are similar
products and services which WestPac and Frontier were serving at large scale. This also created
the Airline industry to be more unstable and with the help of this major aspects of growth
development within the industry were also hampered Goyal, (2020). The major problem which
arise for Frontier were that the Airlines’ key new entrants created the competition to be tougher
with Frontier Airlines. The scale of competition also increased due to cost factors in the Airlines
Industry which were running in an inappropriate manner. In this manner, there has been high
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competition due to the same products and services of WestPac and Frontier. Therefore, the
potential threat of new entrants also affects the business which the Frontier has created and the
ways in which all aspects of growth have been developed.
Power of Suppliers – The bargaining power of suppliers refers to the services which have been
serving higher in the market for their products to be reached out to the customers’ at large scale.
The bargaining power of buyers has been increasing in the Airlines Industry and specifically for
the Frontier Airlines Isabelle and et.al., (2020). For creating the best services for the company,
there have been the changes which were at large scale and this impacted the growth and analysis
of how Frontier initiated the aspects of serving the best at large scale to the customers. To
establish itself in the Airline Industry, Frontier focused on providing the higher quality services
to the large scale of customers and the passengers by fulfilling their requirements and needs in an
effective and significant manner.
It was analysed that the power of suppliers was low and that the Frontier Airlines
provided the essential products and services in the Airlines industry to the customers and
passengers. Frontier did not fail to provide the services rather the bargaining power as compared
to the other Airlines was low because Frontier ensured that it provided all measures of working
effectively and delivering the aspects at large scale for the growth of industry Sengur and et.al.,
(2019). The assets of Frontier are being utilized in the market and are taking concern of all
measures of growth and development within the industry. Additional Routes and destinations by
travelling with Frontier were designed at large scale. There is low power of suppliers in market
for the Airlines Industry is low in comparison to the Frontier Airlines. There also has been cost –
saving transfer from Boeing to Air Bus Fleet. This created more opportunities for growth and
development of Frontier in the Airlines industry. Therefore, the bargaining power of suppliers
was low.
Power of Buyers – The bargaining power of buyers or customers in the market for Airlines
Industry is high which is helping the business of Frontier to grow and develop more on the scale
of how the Airline is taking charge in the industry at large scale Ahmed, and et.al., (2019). The
customers are more concerned about the services and products which are being received to them
by the Frontier Airlines. Frontier Airlines have chosen Airbus to provide the superior product for
the customers and passengers at large scale. Customers comfort has been taken care of by the
Frontier as it has helped in providing all the facilities to the customers’ at large scale. Web –
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based booking engine has been framed for the customers to interact and book tickets which have
helped in knowing and analyzing the aspects of what are the major key concern facilities which
the buyers are in need of. The use of the website has also provided the customers ability to shop
for fares and find the flights at their preferred times and day.
Live TV programming was also the facility which Frontier provided the customers and
buyers as they are more encouraged and engaged in buying such services which are better
provided by them at large scale Shang and et.al., (2020). Frontier is excited to provide this new
service to their customers and buyers as it will be more of usage and will continue the growth
and development of the Airline. There is high scale of power of buyers as Frontier has also
offered customer loyalty or frequent flyer program. Therefore, the bargaining power of buyers is
high which has helped in growing the aspects of growth and development through the services
and facilities which have been provided to the customers by the Frontier in effective manner.
Threat of Substitute Products – Threat of substitute products is defined as the fear of substitute
products and services which are of the same industry. The main threat in the Airline Industry is
that there are similar products and services which are being served to the customers or buyers.
The availability of other products and services that the customers purchase from the other
business or companies is defined as threat of the substitute products Castiglioni and et.al.,
(2018). The major threat to the Frontier Airlines is that the customers if not satisfied with the
services and products of Frontier will not be buying the products and services at large scale.
There is high rise of thereat of the substitute products which have been in the Airlines
Industry due to the WestPac and United Airlines. Frontier has been successfully competing with
the other products and services at large scale in the competitive environment which has been
there in the Airline Industry. The main aim of Frontier is that services are taken into
consideration in significant manner such that the Airlines are being able to provide the customers
their desired products and services at large scale Zeki and et.al., (2019). The expansion of the
Frontier Airlines has the main focus which is concerned with the needs and requirements of the
customers to be fulfilled at large scale and in appropriate manner. Therefore, Frontier has been
providing the best services and products to the customers in the Airlines Industry to be created
on the scale of how long and effective the services are. Frontier’s main focus is that it has been
helping itself to improve and enhance the systems by framing the strategies at large scale in
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effective manner possible. This is the best manner in which the threat is removed from the
substitute products.
Yes, airline industry is attractive for frontier as new routes has been aligned with frontier
strategy that provide opportunities to easily expand into new cities and attract large number of
customers to travel to different destination through airline. International flights are been planned
to new routes so that maximum number of people can be given chance to travel from one
destination to another for range of purposes Vatankhah and et.al., (2019). It offers better services
at low price that helps in providing services to passenger at minimum price possible. With
increase in demand of people to make use of airline to travel and send goods and products to
other countries has resulted in making the industry more attractive for frontier.
At the same time, there are number of innovation and development happened in
technology that has make airline industry more advance or contribute in delivering more
innovative services to frontier so that they can be happy and satisfied Tahanisaz, (2020).
Launching of new routes, airplane with better facilities and use of technology has made it more
attractive for frontier, such as First class cabin, clubs and tasty delicious food offered to people.
Moreover, the overall number of carriage, passenger have been increased in few years, all these
has contribute in influencing the frontiers as they are able to earn more. For example: the fiscal
year of 1999, has been first profitable year that has lead in generation of income of around 30.6
million. Hence, it can be stated that this low cost philosophy and conservative plan for growth
has yield or help frontier in easily problem related to capital.
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REFERENCES
Books and journals
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Industry. SAGE Publications: SAGE Business Cases Originals.
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[Assessed on 2019].
Baxter, G., (2019). A strategic analysis of Cargolux Airlines International position in the global
air cargo supply chain using Porter’s Five Forces Model. Infrastructures. 4(1). p.6.
Castiglioni, M. and et.al., (2018). The virtualization of the airline industry: A strategic
process. Journal of Air Transport Management. 67. pp.134-145.
Goyal, A., (2020). A Critical Analysis of Porter’s 5 Forces Model of Competitive
Advantage. Goyal, A.(2021). A Critical Analysis of Porter’s. 5.
Available at - http://www.jthem.com/PDF/JTHEM-2021-23-06-09.pdf
[Assessed on June 2021].
Isabelle, D. and et.al., (2020). Is Porter's Five Forces Framework Still Relevant? A study of the
capital/labour intensity continuum via mining and IT industries. Technology Innovation
Management Review. 10(6).
Khurram, A. and et.al., (2020). Revisiting Porter Five Forces Model: Influence of Non-
Governmental Organizations on Competitive Rivalry in Various Economic
Sectors. Pakistan Social Sciences Review. 4.
Rotondo, F. and et.al., (2019). The social side of sustainable business models: An explorative
analysis of the low-cost airline industry. Journal of Cleaner Production. 225. pp.806-
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Sengur, F. and et.al., (2019). COMPETITIVENESS LEVEL OF THE AIRLINE INDUSTRY: A
SCALE DEVELOPMENT STUDY. International Journal for Traffic & Transport
Engineering. 9(1).
Available at -
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5c78d1d892851c6950493e71/Competitiveness-Level-of-the-Airline-Industry-A-Scale-
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[Assessed on 17th January 2019].
Shang, X.F. and et.al., (2020). A study on the development model of ctrip.
Tahanisaz, S., (2020). Evaluation of passenger satisfaction with service quality: A consecutive
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p.101764.
Toolkit, W.E., (2019). Frontier Airlines, Inc.
Vatankhah, S. and et.al., (2019). Tackling the fuzziness of business model concept: A study in
the airline industry. Tourism Management. 74. pp.134-143.
Zeki, E. and et.al., (2019). Business models for flight-centric air traffic control. Competition and
Regulation in Network Industries. 20(4). pp.319-332.
Online
Frontier Airlines, 2013. [Online]. Available Through <fJz54Es_C9Id0cwYHMTcBXBM.pdf>
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