Economic factors of a country and region have a direct impact on the potential attractiveness of a given market. As the airline industry continues to grow, they need to pay more attention to improve their service. 'PESTLE Analysis of the Global Aviation Industry', PESTLE Analysis, [online]. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. Free Summary Report This report contains the table contents only. The number of passengers may decrease while the cost of raw materials may increase. SKIREC Publication- UGC Approved Journals. Detailed PESTEL Analysis of Airline Industry. Grow your business. This can help Khazanah Mas's in numerous decisions such as plant location, product development, and pricing strategy. A keen eye on the security of passengers and technical superiority can help the airline industry concerning their business expansion. In 2021, Malaysia Airlines received a 7-star rating by airlineratings.com 2020, received the Putra Brand Award (Putra Brand Icon for the Year 2020, Transportation, Travel and Tourism Category Platinum Award), HR Excellence Awards 2020 (Gold- HR Leader of the year, Gold- Excellence in Workplace Culture, Silver- Excellence in Digital Transformation). Mas Malaysia should consider the fact that at deficit levels of United States in an emerging economy can lead to rampant inflation and serious risks of currency depreciation. For the past three years MAS has been undergone dramatic changes that turnaround the position of the company inside the competitive and ever challenging airline industry. The research finding has revealed that factors like age, gender, family income, entrepreneurship course etc. It can lead to uncertainty and suppression of consumption in both short term and long term. Pestle analysis of Malaysia. If the legal system is not strong then Khazanah Mas's can face numerous challenges from consumer petitions to shakedowns from authorities. Different countries have different attitude towards health and safety so it is better for Mas Malaysia to conduct a thorough research before entering the market. We at EMBA Pro believe that in near future the sector most disrupted by technological innovation is manufacturing and production. Malaysia is a powerful country and one of the most vibrant economies in Southeast Asia. - Demographic Trend The demographic trend is one of the key factors in demand forecasting of an economy. When the data before and after amnesties were considered it is determined that amnesties did create negative results due to moral hazard. [online] Available at: https://www.swotandpestle.com/malaysia-airlines/ [Accessed 01 Mar, 2023]. This report is shared in order to give you an idea of what the complete Risk Analysis Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. Better Essays. Choosing the vision, mission and the reason of existence for Khazanah Mas's. 2. Malaysia PESTLE Analysis & Macroeconomic Trends Market Research Report Browse Report Land borders are. The political factors play a huge role in not only investment decision by transnational corporations but also by companies such as Khazanah Mas's. However, on the supply side, there are not these many jobs being created. This report is shared in order to give you an idea of what the complete Ansoff Matrix Analysis Report will cover after purchase. - Technology transfer and licensing issues for Mas Malaysia laws and culture of licensing of IPR and other digital assets should be analyzed carefully so that Mas Malaysia can avoid shakedowns and IPR thefts. 2021. Everything in desktop + Templates Community, Join 2023 Edraw Special Sales. It can help them to stay away from crashes or technical faults. For example if the supply chain is not flexible it can lead to bottlenecks if shipments from one part of the world are delayed because of sudden climate shift. - Power Structure in Society Khazanah Mas's should carefully analyze both - What is the power structure in the society? The airline industry is not an exception. Published by HBR Publications. The study explores how Malaysian Airlines has achieved its outstanding performance and sustained its competitive advantage, through effectively implementing strategy. Thus significantly impacting the ability of Mas Malaysia to build sustainable competitive advantage The Industrial Organization (I/O) approach advocates that for sustainable competitive advantage external factors are as important as internal factors of the Mas Malaysia. Malaysia Airlines has also partnered with ReveMax and other tech companies to bring about digital transformation in the airlines and is also a part of the oneworld Member Airlines, an alliance of various airlines flying to more than 50 destinations. An external environmental analysis has been conducted to examine the environment in which the company operates. The company needs to set a research team that can work on creating a more environment-friendly aircraft. - Birth Rate Birth rate is also a good indicator of future demand. Analyze the Mas Malaysia external competitive environment to identify opportunities and threats. According to Michael Porter organizational performance is to large extend determined by various industry forces. - Mobile Phone & Internet Penetration Khazanah Mas's should assess the level of internet and mobile phone penetration in the country as it will it in building a requisite business model based on local needs and realities. Established player in Asian region catering to large number of destinations: Malaysia Airlines is a part of the Malaysia Aviation Group (MAG), a global aviation organization. we specialize at providing professional PESTEL analysis & other strategic management MBA resources. How it impacts the demand in the economy. Both the airlines are leveraging each others strengths to improve customers travel experiences. Social factors such as demography trends, power structure in the society, women participation in workforce etc have immense impact over not only the country's economy but also on workforce talent availability and level of consumer demand. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. Many felt there was a need to transform the entire business model. It's still running with the name of Air India. Some of the technology trends that are impacting the macro environment are developments in artificial intelligence, use of machine learning and big data analytics to predict consumer behavior, growing importance of platforms over service providers etc. Political Economic Social Technological Conclusion Political The airline industry operates in a highly regulated political environment where passengers are favored over the airlines. The neighboring countries of hers are; the Philippines, Indonesia, Vietnam, Singapore, Brunei, and Thailand. Political environment and other factors not only impact the cost of doing business but also long term sustainability. Business do face problem when the conflict is between public interest and proprietary technology similar to ruling in South Africa where government & judiciary allowed generic AIDS drug irrespective of patents of global companies. - Corporate Social Responsibilities Culture Are Khazanah Mas's present CSR efforts applicable in the new market or does it needs to have new initiative to cater to the prospective market. The analysis has been done through personal interviews with the managers of 200 Hotels from 7 different locations of Delhi and National Capital Region. Available at: https://www.marketingtutor.net/airline-industry-pestle-analysis/ (Accessed 21 June 2021). The manpower in hotels in the form of trainees from hotel management institutes plays a major role in the operations in the hotels. - Consumer Disposable Income The household income of the country has increased constantly in the last decade and half, compare to the USA market where household income is still below 2007 levels and not increased in real terms since early 1980s. Some of the political factors are governance system, democracy & institutions, military coup chances, probability of armed conflict, law and order in market etc. - Cost of Production and Trends Khazanah Mas's should assess - What are the cost of production trends in the economy and level of automatization. - Attitude towards Savings The culture of saving in US and China is totally different where savings rate in China is around 30% , it is well below 15% in United States. - Employment Laws What are the employment laws in the country and are they consistent with the business model of Khazanah Mas's. PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro environment developments. There is consistency in both policy making and implementations of those policies. The firm initiating it was Tata. The prudent policy should be to take insurance and other types of hedging instruments to mitigate the losses occurring because of the terrorist attacks. There is a large difference in the different practices adopted by the hotels depending on the facilities and management. - Financial Market Structure and Availability of Capital at Reasonable Rates The quantitative easing policy of Federal Reserve has led to liquidity flooding all across the global financial markets. - Attitude towards Health & Safety The attitude towards health and safety is often reflected in the quality of the products and cost structures of manufacturing processes. The change in the behaviour of passengers following the COVID-19 crisis, travel restrictions and the ensuing economic crisis have resulted in a dramatic drop in demand for airline services. The transition of government and change in policy: the political transition in Malaysia has a very systematic process that is . India got its first airline in 1932. In 2021, the company was awarded with COVID-19 7-Star Rating by airlineratings.com 2020. - Role of Non-Government Organization, Civil Society & Protest Groups The country has a vibrant civil society community and Mas Malaysia should build bridges with them and seek out areas of co-operations. You can use the following in your reference section in order to give credit to the source. - Societal Norms and Hierarchy What sort of hierarchy and norms are acceptable in society also influence the types and level of consumption in a society. They may get stuck in legal proceedings. It can lead to uncertainty and suppression of consumption in both short term and long term. do not influence undergraduate students to opt for entrepreneurship. - Role Local Governments Play Local governments are highly influential in the policy making process and implementation as most of the policies and regulations are implemented by the local government as enforcement agencies mostly report to local government in their own states regarding various laws. It will help them to improve the service and can make an impression. If there is huge income inequality in the society then the likelihood of conflict and crime increases. Moreover, through the analysis or PESTEL and Five Force model, it will show how both internal and external environment impacts the growth of SIA and how the competitive environment stimulates the growth of this company. If the legal system is not strong then Mas Malaysia can face numerous challenges from consumer petitions to shakedowns from authorities. The airline companies, which operate in countries with political turmoil, may see a sharp decline in revenue. Despite increasing levels of airborne passenger and cargo traffic, revenue for the global airlines industry has grown sluggishly over the past five years as unstable fuel prices and rising competition have set downward pressure on airline ticket prices and freight shipping rates, restraining industry revenue growth . This can help Mas Malaysia to bring in more transparency and make supply chain more flexible. 'PESTLE Analysis | Generating Better Profit Margin for an Airline Industry', PESTLE Analysis, [online]. - Transparency in Judiciary System & Processes Transparency is essential for fair and consistent decision making. 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