The Airline Industry - Essay Example

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The airline industry employs more than 113,000 people directly and a further 276,000 indirectly where the company has a turnover of more than $19 billion (Bajawa, & Woodall 2006). The UK airline industry is…
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Download file to see previous pages It is very important for any organization to consider the PESTEL analysis before it can engage in marketing its products. This is more important in that it allows companies to plan their future. PESTEL analysis describes a series of macro-environmental factors, which are used in environmental planning. This paper looks at the impacts of government intervention in the airline industry in using PESTEL.
It is very important of external analysis when doing a market research since it gives an overview of the different macroeconomic factors, which the industry has to take into consideration. Some of the Political factors considered are the taxation policy in the industry, the laws related to employment, trade restrictions, and regulations on the environment, tariffs, and political stability in the industry. Economic factors considered in this case are economic growth of the industry, changes in interest rates, changes in exchange rates of the industry, and the rate of inflation that affects the industry (Zhou, & Stuart 2008). Social factors considered in their case includes, cultural concepts of the entire industry, health consciousness of the industry, the rate of growth of the population, the distribution of age, careers attitudes in the industry and emphasis laid on safety in the airline industry. Technological factors are also considered in this case and includes environmental and ecological aspects, which determines the barrier to entry in the industry, the minimum level of efficiency and production in the industry which effect outsourcing decisions. Moreover, technology factors cover research and development activities the level of technology and automation incentives used in the industry rate at which technology changes in the industry (Sajeev 2012).
PESTEL is a way of analyzing the different environments that affect the industry. Pestel deals with ...Download file to see next pagesRead More
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