Air Cargo Market

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Air Cargo Market

Air Cargo Market

Korean Air (Brief background of the company)

Korea Air is engaged in domestic and international airline services, the maintenance and manufacturing of aircraft, catering of in-flight meals, operation of duty-free shops, and limousine bus service connecting Airport with the hotels in Seoul and rental services. The company is also engaged in aerospace industries such as military aircraft and commercial aircraft. Korean Air Lines is one of the prestigious and most esteemed flag carrier airline with headquarter in Seoul, South Korea. The company operates in 130 cities and 45 distinct countries throughout the globe. The Korean airline operates in 20 different domestic destinations the company is listed amongst the top 20 airlines of the world with respect to the Cargo airline and passengers carried. Incheon international airport is the hub of the Korean air lines from where it operates its primary operations and functions, while it also maintains a satellite campus at Incheon. Korean Air also maintains different domestic offices throughout the country with its maintenance facilities situated in International airport of Gimhae. Korean Air has the broadest range of routes available for cargo and passenger services that are departing from North America. The company is facing intense competition from different airline companies such as Asiana Airlines, which is the second largest carrier in South Korea. Kor3ean Airline has also formed a strategic alliance with SkyTeam, which is the world's second largest airline alliance.


Job title


Yang Ho Cho

Chairman and Chief Executive Officer

Executive Board

Subsidiaries owned the Korean Air


% owned



Korea Airport Service Co., Ltd.


Hanjin Information Systems & Telecommunication Co., Ltd.


TOPAS Co., Ltd.


KAL Hotel Network Co., Ltd.


Hanjin Travel Service Co., Ltd.


Jung Seok Co., Ltd.


Hanjin Energy Co., Ltd.


Jin Air Co., Ltd.


Hanjin International Corporation


Waikiki Resort Hotel, Inc.


Michael Porter Five Forces Analysis of Korean Air

The concept of the five competitive forces was developed by Michael E. Porter in the year 1980. The porter five forces analysis is a useful toll to analyze and formulate a competitive and sound strategy for the company. Michael Porter's concept is based on the fundamental philosophy that the strategy of a company to its environment must be formulated with respect to the business environment in which it is operating (Harvey 2007, pp. 220-230). In particular, the competitive strategy for a company is developed from a differentiated understanding of the industry structure and the way it changes. Michael Porter has identified five distinct competitive forces at work in every market and every industry. The expression of these forces determines the intensity of competition in an industry and thus its profitability and attractiveness.

Michael porter's five forces analysis are as under:

Bargaining power of suppliers

The term stands for all supplier sources for the provision of corporate services required inputs. From a high bargaining power of suppliers is to be assumed if

The market is dominated by a few large suppliers.

No substitutes exist for this input.

The customer for the supplier is not an important customer.

A forward integration of suppliers is possible.

The threat of forward integration of suppliers

Relating the industry has a higher profitability than ...
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