External environment analysis of airline industry

Consumer Behavior Situational Influences Situational influences on consumer behavior outlet selection Shopping is an activity that everyone in the world participates in, but what exactly is it? Is a store necessary for shopping to take place? What motivates someone to shop?

External environment analysis of airline industry

Hire Writer Since September 11th, the aviation industry has seen a huge blow to their profits and credibility. The global repercussion from the terrorist attack and the ongoing fear and unpredictability of further violence has been phenomenal.

Understandably, the fear of crowded airports with inadequate security measures and aeroplanes with little or no means of dealing with difficult or violent passengers has increased dramatically, but this is not the only reason why the industry is facing such huge problems.

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Political Influences The most obvious factor to affect the airline industry, locally nationally and globally is the current conflict underway in Iraq. According to the International Air Transport Association IATA all parties involved in air transport have now put into place contingency plans to make sure that there is little inconvenience if anything were to happen.

There are temporary routes that will divert flights away from any military activity www. Another political influence affecting the airline industry is the plan for an overflow airport to be built in Cliffe, Kent.

Economic Influences The subject of airline economics has become an increasingly debatable subject. The forces of deregulation and liberalisation have made it more accessible to new enterprises.

This has created room for price wars, more competition and a resulting drop in bottom line profits. Two major events have had an impact on the economic environment in Europe.

External environment analysis of airline industry

The first is the terrorist attacks on September 11th, and the second is the introduction of the single currency Euro.

The world economy is now recovering and passenger numbers, although increasing, are still low. Having a single currency introduced to Europe is likely to bring more business to airline companies, as international barriers are opened and consumers can use one currency throughout www.

Fuel prices did decline after September 11th, contributing to the airlines ability to recover financially. Prices did stabilise for a time, but have now risen sharply due to the conflict with Iraq.

This will have a negative effect on all aviation companies, due to the extra costs. Airlines have dramatically tried to cut internal costs, with external costs rising, due to the mandatory introduction of greater security measures.

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People are reluctant to fly, and feel extremely venerable and unsafe. Airlines have had to reduce ticket prices in order to get the passenger numbers up, leading to huge financial problems for some companies, some being unable to maintain training e.

Trends and fashion have a huge affect on where people want to go on holiday, which can lead to an increase in competition.

Low cost airlines such as easyJet and Ryan Air have seen a huge increase in passenger numbers www. Probably due to the fact that they fly to popular destinations such as Spain, Portugal and Tenerife, which are popular holiday destinations.

Although BA do operate short haul flights, they charge more and are not perceived as value for money when the budget airlines charge considerably less. Technological Influences The main technological influence on the airline industry is the ever increasing use of e-commerce.

Major airline companies such as Virgin and BA have an internet sites where you can purchase tickets direct. Although the costs to maintain internet sites are expensive, overhead savings would be tremendous.

External environment analysis of airline industry

EasyJet simplifies its working practice by embracing the concept of the paperless office. They believe it makes them more flexible as tickets can be purchased through secure servers anywhere in the world www. Customers also have the flexibility to shop around and compare prices charged for seats on the same flights.

External Environment Analysis of Airline Industry - New York Essays

The devastating effects of the terrorists attack of September 11th and the ease in which numerous aeroplanes were hijacked has rocked all areas of the industry resulting in massive losses on bottom line profits. How to cite this page Choose cite format:IPP is the world wide leader in providing Scheduled Airline Failure Insurance to the global travel industry.

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Our latest thinking on the issues that matter most in business and management. An alphabetized glossary of travel-related abbreviations, acronyms and definitions used in ARC’s resources and throughout this website. By undertaking SWOT analysis both the industry‟s internal and external environment can be analyzed. The first two factors: strength and weakness refers to the internal condition of the firm. Opportunity and threats are environmental conditions, external to the firm and which the firm cannot control.

This course will help you take a holistic approach to marketing by showing you: The internal and external factors to consider when building a marketing strategy Key market research methods to segment your markets and understand customer needs An overview of the airline products and services.

Morgan Kent Timber Ridge Drive Jackson, Mississippi Home: Cell: Email: [email protected] Objective Lead and motivate a team of airline operations specialists in a very fast-paced, quickly changing environment. 3 Foreword Dear Reader, Thank you for joining us on this journey into the future.

We hope you find the report a thought-provoking and insightful read into the factors which may shape the air transport industry.

An airline is a company that provides air transport services for traveling passengers and ashio-midori.comes utilize aircraft to supply these services and may form partnerships or alliances with other airlines for codeshare ashio-midori.comlly, airline companies are recognized with an air operating certificate or license issued by a governmental aviation body.

Industry Analysis Porter’s five forces In order to analyze the industrial environment of Southwest Airlines and evaluate the nature of the competition faced by the company, this essay uses Porter’s Five Forces tool developed by Porter E.M (Porter, ).

LoNGPEST Analysis of the Airline Industry – Assignment Example