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Pest Analysis Of Virgin Atlantic

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Virgin Atlantic can be impacted and influence by the macro environment. However, the term PESTLE is used in procedures in analysing the macro environment and to recognize how future trends in the political, economic, social, technological, environmental and legal environments might impact Virgins Atlantic. However, Virgin normally study the key drivers of change behind the factors of PESTEL. These change establish opportunities and threats in the external environment of a company which can be overcome by concentrating on strengths and eliminating drawbacks.
Political Analysis
Politics plays an essential role in Virgin Atlantic. “This is because there is a balance between systems of control and free markets. As global economics supersedes domestic …show more content…

According to Adamkasi (2016) airline industry has affected negatively by increased security measures especially with the 9/11 occurrence. “The terrorist attacks known by their date, September 11, led to a global recession, with the depression of the consumers”.

Economic Analysis
Economic analysis addresses a number of factors that influence the entire economy. However, some of the factors of economic are the rate of inflation, unemployment rate, exchange rate the price of goods and services, the rate of interest that is charged on capital and investments, foreign exchange rate and economic growth and development.

However, research has indicated that Virgin Atlantic has encountered stiff competition from other companies in the industry, for instance, they were once forced to lower the rate of their flight which follows a review of prices for air travels by their major competitors which include British Airways, Fly emirates, and Qatar Airways. "Economic indicators for example GDP, exchange rates and inflation are important to management of Virgin Atlantic. They can tell when it is a good time to …show more content…

However, people are always aware of the consequences of climate change since all nations encounter some form of natural disasters. However, Virgins Atlantic can encounter operational disruption because of adverse weather conditions and climate changes which results in them cancelling flights and causes delays. This will however, results in loss of production. On the other hand, these factors will bring about travel chaos for Virgin Atlantic and will negatively affect the satisfaction of passengers which results in additional cost and loss of revenue. The rate of unemployment has increase due to laying off of employment by Virgin

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In this segment we will discuss about the external forces of the company that are not controllable (Keegan and Keegan, 1989). PESTLE analysis will be an effective tool here to analyze the factors. 2.1.1 PESTLE Analysis PESTLE is a very effective macro environmental tool containing six important factor. Political Factors In India political factor is very vulnerable.

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The growing competition however does provide consumers with several choices and for Air Canada to be efficiently and constantly drawing its consumer it must offer " money for worth" deals, such as new multi-pass product, holiday packages and other promotional deals that has not yet been utilized in Canadian market. The possibility of Buyer power is moderate. Threat of New Entrants: Air Canada can be considered a fortunate airline as it does not have any major threat from new entrant stepping in Canadian airline industry due to the strict government legislation and regulations. “Even though the entry barriers for new airlines are lower in a deregulated market, still prospect of a new entrant entering the market is weak to moderate. Rivalry:

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and their capacity to threaten other airlines. When Virgin Atlantic competitors are large as well as the number of identical products and services that they offer, the power of their rivals are less. Additionally, both buyers and suppliers seek out competition of other airlines if they cannot get an appropriate deal. When competitive rivalry is low, Virgin has more power in doing what they want in order to attain higher sales and profits. “Rivalry for the Virgin Group is high.

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Pestle Analysis Political Factor Eataly operates in global environment with their operation spread all around the globe; the operation of the company is influenced strongly by political situation of the country where they are doing business. As Eataly have flexible policies to adjust in an unstable economy (Reijers & Mansar, 2005). Economic Factors The entire planet has witnessed the economic decline and hence the characteristic of purchasing products has been greatly affected all companies without exception Eataly. In addition, the income level of Europe is relatively uneven which makes some people fail to pay for products offered by the company (Chaffey, 2009).

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Social Growing competition and capacity amongst airlines, lower air fares and more relaxed travel restrictions in many regions have made international travel a viable option for an increasing number of people coming to

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Economic Environment Factors such as Crude oil prices, aircraft prices, Economies of Scale may also have effect on the airline industry. Social Environment Tourists and Business travellers contribute to the growth of the airline industry. Technological The use of modern technology by the airline manufacturers can contribute significantly to the growth of the

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PESTLE analysis is include of political, economic, social, technological, legal and environmental factors. PESTLE is a business tool that used by companies to track and analyse the macro environment in which the company operate. This tool is very useful which help in overall growth and development of organization after learning from the past mistake and working for future. The first factor is political factor which include such as law of land, taxation policies, rules and regulation, trade restriction and so on.

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-Economy factors: world economic crisis that resulting in a change in the consumer income, if the

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