Concorde’s
Fate in the Troposphere: a Brief Analysis of the Rise and Fall of World’s
Fastest Commercial Jet
Majestic Concorde:
Concorde is one of the most
recognizable airplanes in the world. It was the fastest and the highest-flying
commercial jet in history. It flew at over two times the speed of sound
(2,179km/h or 1,354mp/h). It was an absolute marvel of collaboration,
innovation, and technology, and yet, in 2003, after only having a total of 14
planes ever to fly commercially, it was permanently retired. With only one
short-lived exception– the Soviet Tu-144– the Concorde was the only commercial
aircraft to ever maintain a cruising speed higher than the sound barrier. So,
why did it fail?
Introduction:
The 1940s to the 1970s ushered in a
new era of commercial aviation growth as the Second World War came to an end,
which led a safer and more comfortable economic space in which to operate. In
that time, what is often called the Jet
Age emerged. The here, the
turbofan engine started appearing on such notable aircraft as the Boeing 707, giving rise to an unprecedented form of transport that could
foreseeably become a widely accessible transport system, particularly on such
long journeys as trans-Atlantic routes.
Europe and America was starting to
become connected in a way that very few people had previously experienced. The
safety and reliability of these new engines allowed airplanes to soar to new
heights, with more passenger and cargo capacity, and could travel new
distances, in less time, for less cost as compared to an ocean liner (Boeing, 2015, para. 6).
![]() |
| Boeing 707 |
The dramatic increase in speed and
efficiency, coupled with the relatively new concept of flying faster than the
speed of sound engineers quickly began searching for a
way to maximally shorten travel times, particularly on common long-haul routes
such as from London to New York. The ambition to flying for prolonged periods
of time at speeds exceeding the speed of sound –approximately 1,225 km/h, also
known as Mach 1– posed many difficult challenges for engineers as the
conventional shape of an airplane was built for generating lift, not maximizing
speed. These challenges were not seen as limitations, but rather considered to
be obstacles for engineers to overcome, and given the prospect that the first
company to figure out how to overcome them could dominate this sector,
aggressive and expensive supersonic transport (SST) projects were launched in
the USA, Britain, France, and the Soviet Union. Ultimately only one project
prevailed: Concorde, built by
Aérospatiale-BAC, which was a joint project between French and British teams.
This project will address the many
physical challenges that faced SSTs, and will examine the competitive
atmosphere in which the SST projects were conceived. We will then attempt to
explain why the Concorde project, one of the most expensive and safest
commercial aviation projects ever conceived, ultimately failed.
The Faster You Try to Go, the Harder
Mother Nature Tries to Hold You Back:
In order to properly understand the
demise of the Concorde, one must have at least a superficial appreciation as to
why an SST project is so ambitious and difficult to develop.
- Lift
vs. Drag:
in the 1960s it was already understood that there are two major factors that
affect the aerodynamics of an airplane, namely lift and drag. The shape of a
wing is very important in the how the airplane flies. The longer the wingspan,
the more area, and thus the more lift (ability to fly) a wing can generate, but
this is exchanged for the fact that a longer wing has more leading edge,
meaning that there is more parts of the wing ‘hitting’ the air. The problem
with this design is that the leading edge causes drag (air resistance), thus requiring
more power to overcome it. So, a solution to this challenge is the Delta wing, which reduces leading edge,
and instead increases surface area by making the wing longer along the fuselage
of the airplane. (photo of delta wing) This design allows for significantly
faster flight due to less drag, but it also requires significantly faster
speeds, thus more power, in order to stay airborne because it does not generate
as much lift as the first design (Hirschberg, 1997, p.1-6).

Concorde as compared to the Boeing 2707. Notice the totally different wings (Hirschberg, 1997, p.2-2). - Sound Barrier: Sound travels through air. The speed of sound is a physical phenomenon that is affected by the way that air molecules move. When an object moves through air slower than the speed of sound, the air can bounce off of the object and essentially gets out of the way. But when this object is travelling faster than Mach 1 the air cannot bounce away fast enough, thus forming a sort of invisible wall of air. In order to overcome this resistance, the airplane requires a significant amount of extra thrust as compared to an airplane flying slightly below Mach speed.
- Sonic Boom: Traveling at faster than the speed of sound also creates what is described as a sonic boom, which is generally by observers as either a physical rumble or a the loud shockwave of an explosion. The sonic boom created by Concorde could be felt and heard on the ground below the plane.
These three limitations are
important in understanding why the Concorde was ultimately not feasible in the
airline industry.
Industry Analysis of 2003: PEST
Political: French and British
companies, Aérospatiale and the British Aircraft Corporation (BAC), jointly
created Concorde in the 1960s-70s under an international political treaty that
prevented either company country from abandoning the project. This project
would foreseeably be extraordinarily expensive, but it was considered necessary
in order for the countries to remain at the forefront of civil aviation,
particularly with regards to the Americans and the Soviets (Johnman & Francis, 2002). Concorde entered service in 1976 and remained a symbol of innovation and
prestige that was closely linked to the founding countries. The aircraft was
retired in 2003. At that time, Richard Branson, CEO of Virgin Atlantic Airways
attempted to revive the Concorde by purchasing the entire British Airways
fleet. Due to the concerns that future legal issues could arise for Airbus,
British Airways, and the UK government if the airplane continued flying,
Branson’s offer was rejected and Airbus discontinued any maintenance services
for the aircraft.
Economic: A decline in economic
activity in the early 2000s caused many countries to curtail their civil
expenditures. Meanwhile, conflicts were arising in the Middle East that were
also projected to cost a tremendous amount of money caused some governments to
redirect their spending focuses. This economic climate affected many developed
countries, sending many into economic recessions, which in turn affected civil
consumption of luxury products like travel on board the Concorde.
Social: On 5 July 2000, Concorde suffered
its first and only fatal crash soon after it left Charles de Gaulle Airport in
Paris, France. All on board, plus four on the ground, were killed in the
accident. Due to the perceived aging of the aircraft being associated with the
crash, and a fall in airline travel after the 11 September 2001 attacks in New
York, Concorde’s passenger numbers began to fall and remained at unsustainable
levels for the remainder of the aircraft’s operational life. Furthermore,
public concern over greenhouse gas emissions was increasing, meaning that
grossly inefficient transport vehicles were inevitably going to decline in
popularity.
Technological: Concorde ran on four
low-bypass– inefficient– turbofan engines (contrasted against the high-bypass
engines of most other airplanes) that required afterburners to be engaged for a
prolonged period of time in order to reach the desired cruising speed. This
combination meant that the Concorde burned fuel at a significantly higher speed
than other trans-Atlantic planes, while carrying only one quarter of the
passengers of the popular Boeing 747. These characteristics were required in
order to overcome the physical barriers described above. In this sense, the
Concorde simply could not compete with other modern airliners in terms of fuel
efficiency.
Competitive Analysis: Porter’s
5-Forces
Threat
of new entrants
The
threat of new entrants was very weak. The aviation industry required huge
capital investment to enter, which made the barriers to entry extremely high. Government
support was a necessary factor for entering into this industry, particularly in
the SST category. The US government supported Boeing, while the French, German,
Spanish and English governments founded Airbus. Concorde, they entered service
in 1976 while they started researching and developing their supersonic
passenger airliner in the 1950s. During this period, the British and French
government injected huge capital into the project. In addition, as the safely
issue was the main concern for the aviation industry, the sophisticated
technological knowledge and expertise were required to develop the airliner.
Threat
of substitute products or services
The
threat of substitute products or services was high. The potential substitute
products for airliner were train, car, boats, or subsonic, long haul planes.
For the short and regional flight, people may choose these substitute products.
For the long and international routes, particularly between the Americas and
Europe, the threat of these substitutes was nearly eliminated as distances were
simply too great to allow convenient non-air travel. However, the threat of
substitutes such, as subsonic airlines, increased dramatically as more and more
entered service in the 1970s, including the Boeing 747.
Bargaining power of
customers (buyers)
At
the beginning of the Concorde project, customers had relatively weak bargaining
power. Only a few companies dominated the aviation industry the 1950s-60s. It
was difficult for the airline companies to choose the alternative airliner
brands. Also, buyers were not price sensitive as their choices were few.
Moreover, the costs were very high for the companies that were already
operating the Concorde to switch. For example, they need to hire the new
maintenance staff and pilot as the construction of the airliner was different.
Bargaining power of
suppliers
The
bargaining power of suppliers was medium. The development of passenger airliner
required extremely high-tech capacities. Requirement for the parts and
equipment were also very high. For example, the engine, the avionics, and
hybrid circuits were all specialty items, meaning that the suppliers had
increased bargaining power due to a lack of competition. However, what lowered
the suppliers’ bargaining power was that the aviation industry was dominated by
few companies, meaning that parts and equipment were very unique and had to be
sold to these few companies.
Intensity
of competitive rivalry
The intensity of competitive rivalry was low. The
commercial aviation industry was not yet matured during the Concorde’s
development period. Although there were other SST projects being created in the
United States (Boeing 2707) and in the USSR (Tupolev Tu-144), neither project
was anywhere near as successful as the Concorde. The 2707 was terminated before
production and the TU-144 had limited routes and only few 55 schedule passenger
flights.
![]() |
| Boeing 2707 |
![]() |
| Tupolev Tu-144 |
After doing the industry analysis, Concorde might
estimate that the aviation industry was not in an intense competition and they
could gain a lot once the supersonic passenger airliner could be successfully
developed by them. In order to forecast new
technology adoption, we can apply the theory from
Lawrence K Vanston. He stated
that the drivers and constraints could be used to
assess new technology adoption.
For the drivers, Concorde’s airliner could provide
high satisfaction for their
passenger. For example, passenger could save half
time if they travel by supersonic
passenger airliner instead of other airliners. For
the constraints, the research and the
manufacture for supersonic passenger airliner cost
too much. Concorde needed to
consider whether the cost could be decrease or not.
If not, it is difficult for them to
make profit.
Everybody Wants It, but No One Will
Buy:
In
the 1950s and 1960s, the commercial aviation industry was very young. Analysts
were still unsure of what the trends would be for the future of air travel, but
they seemed to be going up. In fact, starting in the 1960s, 17 separate
airlines had placed orders for 75 aircraft with the hopes that the service
provided by Concorde would keep them competitive in the growing market. But test
after test ended up making it the most tested airplane ever (British Airways, 2015, para. 3). This, however, ended up being both its blessing and its. What the extensive
testing of the airplane proved was that it was extremely reliable and showed
that all of its performance promises were possible to keep. The downside to all
the testing was that it became abundantly clear to prospective airlines that
there were going to likely be some strict limitations put on the plane due to
its abysmal fuel consumption and its very disruptive sonic boom. They all began
to grow worried that carbon dioxide emissions into the high atmosphere, coupled
with the audible and physical nuisances caused by the sonic boom. One by one,
airlines started cancelling their orders and left all of the 14 commercial jets
produced to be split evenly between British Airways and Air France.
What Went Wrong?:
If we look around today, we can see
that airline companies pop up all over the place. What we may notice even
before we notice those that are appearing is those that are disappearing. The
civil aviation industry is notoriously competitive, has very thin profit
margins, and many companies often spend a significant amount of time running at
a deficit. This has a lot to do with customers wanting to pay lower and lower
prices while operating costs continue to climb, particularly with the price of
fuel.
Concorde customers, both regular and
new, that were willing to pay the first-class ticket prices, were abundant for
the operating life of the airplane until the famous crash in 2000.
Even at that time, cost was not the real issue for the
passengers, but it was an increasingly burdensome cost on British Airways and
Air France, as operating costs continued to climb. Furthermore, passengers
paying the Concorde prices had the alternative of flying for the same prices in
the airlines’ first-class services on their regular jetliners.
![]() |
| Moments before Concorde's first and only crash |
In our view, the thing that was the
most troubling for Concorde was never its image or the costs of doing business,
but was rather the physical limitations posed on the plane by Mother Nature.
Moving at over the speed of sound requires a tremendous amount of energy that
had no prospects improving the foreseeable future. Since the Concorde started
flying in the 1960s until now, the technology has not really improved. The
basic logic is: if you want to go faster, you have to push harder. To push
harder, you need more energy.
The emission emitted by
the Concorde, along with its low seat and weight capacity, and its
disproportionately high consumption of jet fuel as compared to other planes
meant that Concorde was not a technology that engineers could improve upon.
![]() |
| Fuel needed to get a rocket to space |
These limitations were likely
unforeseeable at the time of development as the engineers were not able to
anticipate the innovations that would come. How could they have known that in
2015 there would still be no way to fly at those speeds, with that amount of
weight, for that long, without burning a tremendous amount of fuel? To them,
probably nothing seemed impossible. Consider that only about 50 years before
they developed the Concorde, manned flight was an impossibility, and then
during development, humans landed on the Moon and then safely returned to talk
about it. As Robert C. Merton in the Harvard
Business Review wants us to appreciate, there is always a risk when
treading into new technological territories. There is no way to know how the
technology will progress and how it will be used once you put it in the hands
of public users (Merton, 2013). With airplane efficiencies trending downward since the 1960s, Concorde was
simply not a product that could continue to do what it was doing without an
inevitable fall in customers due to growing awareness about the connection
between aircraft emissions and climate change.
What Can We Learn?
The Concorde was one of the most
magnificent flying machines ever invented. It overcame every technological and
physical barrier and showed the world what was possible. In the end, though,
the technology failed. So what can we take away from this project? Perhaps the
best thing that we can take away from it is that Mother Nature is an extremely
powerful force. She grants no exceptions to anyone with regards to her rules.
If you can’t compete by playing by her rules, you shouldn’t compete at all. We
can always make things smaller or bigger; we find new and faster ways to
acquire and store information; we can make buildings taller and elevators
faster; what we can’t do is break Mother Nature’s rules. It is simply
impossible.
Air resistance, as an example, is
something that we faced in the 1960s, and we face it today. It is one of the
main contributors to why cars can’t go faster or drive further on a single tank
of gas; it is why we have meteor showers at night; it is why parachutes work. Concorde’s
designers couldn’t have foreseen that we wouldn’t have a sleeker way to deal
with wind resistance today, but they could have known that it was always going
to be there. If your innovation is not up to the challenge of playing by Mother
Nature’s rules, your innovation is doomed to fail.
Reference
- Boeing. (2015). The Boeing Airplane Co. …The Jet Age Begins. Retrieved from http://www.boeing.com/boeing/history/narrative/n036boe.page
- Hirschberg, M.J. (1997). A Case Study by Aerospatiale and British Aerospace on the Concorde, American Institute of Aeronautics and Astronautics. Retrieved from the ProQuest Ebrary.
- Lewis Johnman & Frances M. B. Lynch. (2002). A Treaty Too Far? Britain, France, and Concorde, 1961-64, 20th Century British History. London, England.
- British Airways. (2015). About Concorde. Retrieved from http://www.britishairways.com/en-gb/information/about-ba/history-and-heritage/celebrating-concorde#6
- Robert C. Merton. (2013). Innovation Risk. Harvard, Massachusetts.
- Concorde. (2013) Retrieved Mar 9, 2015, from http://www.icare-aeronautique.com/wp-content/uploads/2013/11/concorde-wallpaper.jpg
- Boeing707. Retrieved Mar 9, 2015, from http://cdn-www.airliners.net/aviation-photos/photos/1/7/4/1948471.jpg
- Boeing2707.(2008). Retrieved Mar 9, 2015, from http://up-ship.com/blog/wp-content/uploads/2008/10/boeing_2707-300_prototype.gif
- Tu-144. Retrieved Mar 9, 2015, from http://upload.wikimedia.org/wikipedia/commons/a/af/Aeroflot_Tupolev_Tu-144_1977_Volpati-2.jpg
- Rocket launch. (2013). Retrieved Mar 9, 2015, from https://compastro.files.wordpress.com/2013/07/rocket-launch.jpg
- Concorde on fire. Retrieved Mar 9, 2015, from http://i.ytimg.com/vi/vzbNlaLyWuA/maxresdefault.jpg
- AVweb. (2010). Supersonic Flight, Sonic Booms. Available from https://www.youtube.com/watch?v=gWGLAAYdbbc








Throughout the modern global business environment, “where is the enemy” has become increasingly difficult to predict.
ReplyDeleteLow-cost airline service rewrite the service rules of the airline industry and forces traditional airlines go bankrupt.
Newspapers who run the business of content has been pushed by websites who manage the service.
These are real stories in the last decade, original winner was compelled to the corner by those "invisible, despised" opponents.
Thanks Team 13’s sharing. I really learn a lot from the PEST analysis. It really told us the reasons of why Concorde fail.
ReplyDeleteActually I think Concorde is a realization of dream to fly faster than speed of sound. It is never worth to go for commercial as the operation cost and environmental impact were too high.
Besides, the following aerospace company representatives already told us the main reason of Concorde retirement.
"The airlines have clearly spoken: Commercial supersonics are just not economically -and to some extent, technically - feasible. Maybe in two or three decades, that will change." [Todd Lecher, a Boeing spokesman October 20, 2003] "Concorde: Fast Flight to Nowhere", http://concorde35mm-trip-report.co.uk/wired%20news-am.html
"The costs of operating Concorde, and in particular maintenance and support, have become such that operations are unrealistic for any operator." [Noel Forgeard, Airbus Industrie Chief Executive in 2003] www.concordesst.com
From the story of Concorde, I am thinking the new travel business – space tourism. Do you think it will face the similar difficulties?
Thanks for the team who share this interesting topic & learning. It seems to me that Concorde is a Disruptive Innovation. It helps create a new market and good value to consumer and eventually disrupt an existing market - Boeing 707/air bus. Would they had ever consider to enhance this new technology by phasing?
ReplyDeleteThough the technology failed by many unchanged obstacles, but human is always learn from mistake and I believe that if the technology is able to continue, it will be possible.
This technology built over 35 years ago and what if the people continue to investigate & test it, shall it bring us a new page of Aviation business? I believe that the overhand cost will be reduce as the travelling time has massively reduce. Time is money!
StudentID: 50770592
ReplyDeleteThanks for your sharing on Concorde. Personally this topic was to most attractive topic to me among all topics. Concorde was invented with most advanced technologies in the past with the fastest speed among all transport. It should have the definite advantage on saving time. However, the business world is changing everyday. I do agree that business model affect the survival of Concorde very much. With advance technologies like video conferencing and Internet, the necessary for urgent business travel become less important. Also for cost concern and low-cost airline business model. Cost and benefit seems to be the most important factor to management of airline industry.
Personally I would like to see 2nd generation of Concorde aircraft, with less energy consumption and less operating cost. But seems it is not so realistic... haha
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ReplyDeleteStudent ID: 53793261
ReplyDeleteFirst of all, kudos to team 13. I think your team did a good job analyzing the failure of the concorde.
Personally, the concorde fascinates me because it is such a convenient technology in my opinion. I think to myself, "how could such a fast airplane quickly become a failure story?" In other words, I'm sure a big enough market segment must have existed which would gladly pay a bit more to travel quicker by means of concorde.
I think there are several reasons for the concorde's demise, as have already been pointed out:
1. Too loud - The concorde is super loud when it flies which simply makes it too annoying.
2. Lack of efficiency - The concorde requires far too much fuel to operate.
However, I think the main reason the concorde failed is because it just didn't make sense from a business perspective. Any military would probably love to study the concorde's technological capabilities because they resemble fighter jets much more than commercial aircraft. The point is, if you want to have a profitable business model in the highly competitive airline industry then you better exploit every single opportunity to do so. Michael Porter, applying his 5 forces model, states in his own words how incredibly competitive the airline industry is in the following Youtube clip: https://www.youtube.com/watch?v=tQ8xdLGJPLE
In the first 20 seconds, Porter argues that the airline industry has been one of the least profitable industries known to mankind for decades basically.
Commercial airplanes are designed to carry as many people as possible. This naturally allows for revenue to be maximized as well - as long as airlines are able to fill up each airplane. Therefore, I think the concorde was too small and cost inefficient to be able to generate profits. Thus, it could not survive as a serious means of commercial travel in the highly competitive airline industry.
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DeleteStudent ID#53970301
ReplyDeleteThanks for the sharing from the group about the Concorde failure.
As the person who has been working in the aviation industry for a number of years, I personally think that concorde is amazingly designed in the 1960s and it indeed led to a revolution to the aviation industry in the 1960s. While concurring with the comments from fellow classmates that the demise of the supersonic commercial aircraft is mainly attributed to the cost ineffectiveness, technological advancement is also one of the main causes led to the failure of the aircraft. In the past, air travellers were willing to pay high price to shorten their air travelling time in order to attend important business events or conferences. With the availability of internet access while travelling in the air, video conferences and important business and political decisions could be made in the air. Hence, the demand for speedy travelling between destinations significantly declines. Hence, this has precipitated the death of the environmentally and economically unfriendly (additional noise creation & high fuel consumption) supersonic aircraft for commercial usage.
Thanks for this team's sharing which I like much and have more understanding on the Concirde aircraft.
ReplyDeleteI like the conclusion from this team what we can learn from this case even all technology issues have overcomed. But, I would like to hear more on how it promoted Concorde or rebuild the people confidence after the Air France Flight 4590 case that occurred on 25 July 2000.
Thanks for your efforts and I really enjoyed reading it! It's indeed a fascinating story to tell and you did a great job!
ReplyDeleteI agree with some of the previous comments that the cost ineffectiveness and new communication technologies both contributes to concorde's failure.
What's more, I think you did a very thorough background analysis which helps a lot on understanding why it failed. As you mentioned, concode, unlike other models, is actually a product of political needs rather than market needs. I think this characteristic doomed its failure at the beginning. If there wasn't the political treaty preventing both countries' companies abandoning the project, I believe concorde would have never been putting into commercial operation! The fact that both the other two projects ended nowhere could absolutely tell us something. This also reminds me the reality- I do not object governments involve in business, however, they should follow the market rules as well, rather than putting themselves beyond the market. If they do that, corcorde is a perfect example to tell them what would be the outcome.
Another thing I learned from your story is we really should not put any limitation on our imagination! You mentioned how ambitious and confident the engineers back then were that they believe human being can achieve anything. I think they are absolutely right, if they did not have that belief, instead they thought about all the barriers caused by natural rules, there would never been such amazing technology innovation! I think concorde's commercial failure can not deny the fact that it is still a masterpiece of modern technology innovation.
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ReplyDeleteDear Team 13,
ReplyDeleteGood innovation or idea happening in wrong surroundings or time can lead to a disaster. Fortunately, Concorde is not invented or produced in this era which seems to be the worst time for airline companies.
In your failure analysis, you mentioned waste emission. Here, I think such political issue can be analyzed by PESTLE model because it talks something about political. You can put that since government or nations signed green house emission reduction commitment, though Concorde can survive for a period, government would still ban it for its over waste emission.
In the analysis about the failing to estimate huge cost of operating Concorde, how about using ladder of inference? It is like selecting wrong data or making wrong assumptions.
Thank you team 13 for your effort. I agree that the design of Concorde is a good innovation outcome, however, same as your analysis, a lot of factors affecting the development of Concorde and even caused a innovation failure.
ReplyDeleteI have been working in logistics industry for many years, of course, time is money, but there are still many factors may affect the total transportation cost. For instance, direct cost impact such as fuel, rental, manpower etc. For indirect cost, operation efficiency and even opportunity cost. Take the example of international airfreight transportation, if the operator can maximize the volume & weight utilization, then they can maximize their benefit by paying the same cost to airline. So, it is clear that excluding the factor of pollutant emission and other political influences, only high fuel consumption has always a great impact to Concorde development. With consider to the need of sustainability development from all developed countries' government, Concorde in fact not a good choice from user point of view unless Concorde can improve all the existing weaknesses and achieve a higher environment and user requirements in the future. By the way, good topic and good information. Thank you.
Comments on Concorde case
ReplyDeleteAppreciate the efforts team 13 mates put in the project. If it hadn't been for them, I would not have known as much about Concorde as I do now.
I was a kid when Concorde flew between Europe and North America. As a Chinese born and bred, I only got to see Concorde on television. And I learned by reading a piece of article from a magazine that flying Concorde, though time-saving, was not a pleasant experience. I must also have learned from my father that it was the fastest ever passenger jet, it was faster than the speed of the sound.
By the time that I was old enough fly intercontinental, Concorde was no longer in service.
One minute typing error: Threats of New Entrants: [...] "In addition, as the safely issue [...]" 'safely' should be 'safety'.
(student number 53279689)
Cool team with cool topic. Thanks for sharing such an amazing innovation case. Really appreciate your technical analysis before industry analysis, which helps me better understand the fundamental and specific reason why Concorde doomed to fail, and I quite like your conclusion that innovation is doomed to fail if it is not up to the challenge of playing by Mother Nature’s rules. Concorde could be a success in regard to technological advancement or any testament to aerospace engineering and aircraft development. However, in sole terms of economics, the program had been a dismal failure.
ReplyDeleteThe failure of Concorde is quite disappoint case since it can make the flight time dramatic shorter comparing with the airbus. The Concorde is fastest commercial jet in the human history.
ReplyDeleteThe threat of substitution is medium. The passenger can choice different type of transportation method with different timeframe. It is including car, train, ship, long haul plane.
The bargaining power of buyers is weak. Here is not much airline to be selected.
The bargaining power of supplier is medium. The management of airline is required high technical knowledge
The threat of new entrant is high due to high capital investment is airline industry.
The Intensity of competitive rivalry is low in the airline market during the period of Concorde development..
Due to the public awareness of Concorde's high fuel consumption and aircraft emission. And also the safety concern from customer that the Concorde could not to continue without inevitable fall of customer.