Strategy Final Exam: Instructions

Question 1
Competitive Rivalry – For space tourism, cutting edge engineering space solutions are
required which are currently available with several firms which are looking to foray in this
industry. Thus, the competitive rivalry is expected to be medium considering the small size
of market considering the high prices charged.
Bargaining power of suppliers – Space tourism is based on standard technologies and
considering that the industry would have a limited players, hence it is expected that suppliers
bargaining power would continue to be low only especially to begin with.
Bargaining power of customers – It is apparent that with the expected charges that the
various companies are going to charge for each trip that the target market of these would be
the high end rich who desire to travel in space. However, considering the specialised nature
of service with not many players and also low elasticity of customers, the bargaining power
of customers is expected to be medium.
Threat of substitute products – The services offered by space tourism industry has...