Are entry-barrier into the narrow-bodied segment the same as those into the wide-bodied segment? Explain you answer?. Management
The entry barriers into the narrow-bodied segment seem to be much lower than the entry barriers into the wide-bodied segment. This statement can be supported by the recent changes in the competitive landscape of the narrow-bodied segment. In fact, in last years, three new companies entered the industry offering smaller narrow-bodied jets. In fact, these new entrants (Comac, Bombardier and Embraer) have recognised the increasing demand for narrow-bodied jets. Importantly, the entry barriers into this segment are still extremely high but they are more attainable than the entry barriers into the wide-bodied segment. This is particularly applicable to Bombardier and Embraer which can use their supplier contacts and experience from developing and manufacturing regional jets and consequently, achieve economies of scale.