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.

Kate

Academic Consultant

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