In a market with a lot of growing airlines, MAS has still managed to sustain its competitive advantage even during critical situations. It is an acronym for political, economic, social, technological, environmental and legal factors that shape the macro business environment. Available at: https://www.managementstudyguide.com/pestle-analysis-of-global-aviation-industry.html (Accessed 16 June 2021). 'A PESTLE analysis of the aviation industry', notesmatic, [online]. - Integration of Technology into Society & Business Processes Uber failed in China because it tried to enter before smartphone were widespread in China. Also, you can find substantial PESTEL templates in our template community to have a quick start. Read More. 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. 3. 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 . India got its first airline in 1932. - Types of Immigration & Attitude towards Immigrants Given the latest developments such as Brexit and Immigrant detention on Southern border of United States. - GDP Trend & Rate of Economic Growth The higher GDP growth rate signals growing demand in the economy. - Empowerment of Supply Chain Partners Mas Malaysia should analyze areas where technology can empower supply chain partners. There is consistency in both policy making and implementations of those policies. The company flew its first commercial flight in 1947 and was initially known as Malayan Airways Limited. - Employment Rate If the employment rate is high then it will impact Khazanah Mas's strategies in two ways it will provide enough customers for Khazanah Mas's products, and secondly it will make it expensive for Khazanah Mas's to hire talented & skillful employees. Malaysian Airlines was subject to litigation due to missing passengers, 1. Malaysia Aviation Group (MAG) and Malaysia Airlines have introduced the MAG Sustainability Blueprint in 2020, which aims to achieve the target of becoming a net zero carbon emission airline by 2050, together with its oneworld alliance partner airlines. It has affected the airline industry to a certain level. This can help Mas Malaysia to bring in more transparency and make supply chain more flexible. Higher inflation may require Khazanah Mas's to continuously increase prices in line of inflation which could lead to lower levels brand loyalty and constant endeavors to manage costs. The airlines need to improve their systems and flights to decrease harmful emissions. Environmental factors are fast gaining traction not only among consumers but also among regulators and policy makers. A PESTEL framework was used to analyze macro environment of aviation industry. Here is a PEST analysis for airline industry to give you a better idea. Pestle analysis of Malaysia. Legal factors often govern conditions to enter the market, laws to operate in the market, and procedure to resolve any dispute with other stakeholders. 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. - Adherence to Common Law Is the country following common law which is uniform for all parties whether domestic or international. - Influence and Effectiveness of Environmental Agencies The role of environment standards enforcement agencies is critical in safeguarding norms. The detailed complete set of references are available on request in the 'Complete report' on purchase. Based on the findings of the present study and learning lessons from other countries, the author provides recommendations for universities and policy makers to boost the spirit of entrepreneurship among youth. Available at: https://www.spendedge.com/casestudy/pestle-analysis-of-airline-industry (Accessed 21 June 2021). - Environmental Standards and Regulations both at National & Local Levels Often the environment policy at national and local level can be different. The transition of government and change in policy: the political transition in Malaysia has a very systematic process that is . PESTLE analysis. With high ASD, your ad post will be displayed across all our 2500+ pages.Grow your business with effective advertisement! - Work Force Productivity Work force productivity in US has grown by 25-30 % in last two decades even though the salaries are not reflecting those gains. With EdrawMax Online, you can create over 280 types of diagrams, charts, and visuals. - Preparedness for 5G Related Infrastructure Countries across the world are trying to prepare themselves to install 5G infrastructure. do not influence undergraduate students to opt for entrepreneurship. Malaysia Airlines Berhads vision is to become, An Airline of Excellence.. Experience economy is one of the fastest growing segments both among millennials and among baby-boomers. An external environmental analysis has been conducted to examine the environment in which the company operates. 1.2.1 Global Low Cost Airlines Market Size Growth Rate Analysis by Type 2023 VS 2028 1.3 Low Cost Airlines Segment by Application 1.3.1 Global Low Cost Airlines Consumption Comparison by . Choosing the vision, mission and the reason of existence for Khazanah Mas's. Choosing the vision, mission and the reason of existence for Mas Malaysia. - Democracy & Other Democratic Institutions According to Nabil N. El-Hage, Leslie S. Pierson the democratic institutions are needed to be strengthened further so that business such as Khazanah Mas's can thrive in an open, transparent and stable political environment. Subsidiaries, Partnerships and Collaborations Report. With its reputation severely damaged, MAS was faced with many hard-hitting questions from various stakeholders about the airline's prospects. - Intellectual Property Rights Protection Khazanah Mas's should assess the level of protection that intellectual property rights get under the legal system of the country. Political Landscape Malaysia has well-developed foreign relations through bilateral agreements and trade treaties. The study provides analytical view on the management strategies, which have been undertaken by MAS. 5. Khazanah Mas's can leverage this trend by expanding its product range and targeting new customers. Khazanah Mas's can borrow cheaply under such circumstances. 1. Malaysia, is a federal constitutional monarchy in Asia. Climate change and changing ecosystem is leading to the extinction of more than 20% of species on the planet by the turn of this century. This report is shared in order to give you an idea of what the complete BCG Analysis Report will cover after purchase. - 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. If the legal system is not strong then Mas Malaysia can face numerous challenges from consumer petitions to shakedowns from authorities. The chief executive officer of Malaysia Airlines (MAS) had the daunting task of sustaining a business that had suffered the tragic loss of two of its airliners in a span of just four months. It has decimated the culture of savings as people dont have enough to save. Moreover, should MAS's new CEO pre-announce publicly his intentions? Like most other businesses, the airline industry is also affected by the nation's unstable political condition. The PESTEL analysis of the airline companies can show how the external factors have affected them. This report is shared in order to give you an idea of what the complete Subsidiaries, Partnerships and Collaborations Report will cover after purchase. 1.1 Company introduction . Increase in jet fuel prices decreases profits for airlines, 1. - E-Commerce & Related Infrastructure Development As E-Commerce is critical for Mas Malaysia business model. Academia.edu no longer supports Internet Explorer. Malaysia Airlines is also exploring carbon friendly technologies that are available at London Heathrow such as utilizing electrical ground power to electric pushback. Thus significantly impacting the ability of Mas Malaysia to build sustainable competitive advantage Kuala Lumpur is the capital of the country. - Empowerment of Supply Chain Partners Khazanah Mas's should analyze areas where technology can empower supply chain partners. 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. Banking systems is always the main segment of the financial sector. - Nature of Social Contract between Government & Society Before entering into a market Mas Malaysia needs to understand the nature of social contract between government and society. - Attitude towards Leisure Khazanah Mas's should conduct an ethnographic research to understand both attitude towards leisure activities and choice of leisure activities. For example Trump not standing by US commitments created an environment of uncertainty. Developing strategies that can capitalize on Khazanah Mas's strengths and help mitigate weaknesses and impact of threats of macro-environment. Many external factors contributed to this situation. Strengthening of democratic institution will foster greater transparency and reduce the level of corruption in the country. Airline Industry Analysis. However, at the same time, the number of passengers is declining, which can show a negative result in the long run. - 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. Before COVID-19, the airline industry generated $818.32 billion globally in 2019. It can help them to offer a safe and comfortable service. Malaysia Airlines: The Marketing Challenge after MH370 and MH17 case study (referred as Mas Malaysia for purpose of this article) is a Harvard Business School (HBR) case study covering topics such as Sales & Marketing and strategic management. For example the power structure in US economy is slowly moving towards the older generation as that generation has higher disposable income compare to the younger generation. 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. PESTEL analysis is mainly the assessment of macro environment factors. Analyze Strengths and Weaknesses of Mas Malaysia. - Unrest within the Country & Chances of Civil Unrest We dont think that Mas Malaysia business operations are facing any dangers from any kind of civil unrest or internal militant operations in the country. Often companies enter the arena without requisite infrastructure to support the technology oriented model. - Level of Acceptance of Technology in the Society Mas Malaysia has to figure out the level of technology acceptance in the society before launching new products. 1. 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. 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. Cuts down my effort to surf through heaps of redundant data.-Alexandra MookiMajor in Business Administration, Carnegie Mellon University, This website has an amazing support team. The companies must take advantage of technological innovations to offer a satisfactory service to their passengers. With its hub in Kualalampur, the airlines fleet consists of 15 A333, 6 A359 and A332 and 44 B738. Strong partnerships with other airlines, groups and companies: Malaysia Airlines has expanded and improved its operation through various partnerships in recent years. In case you need the complete report please purchase using the buy options displayed. The research finding has revealed that factors like age, gender, family income, entrepreneurship course etc. Employee turnover is the never ending problem faced by the Indian IT industry due to less compensation and less career growth, dissatisfaction with the work environment or with the superiors, less onsite opportunities and misbalance between personal and professional life. Over 32 million people inhabit this land. 'PESTLE Analysis of Airline Industry | Marketing Tutor', Marketing Tutor, [online]. Like other industries, airline industries are also get affected by social conditions. - Fiscal and Monetary Policies The Republican government tax break culture has increased the deficit and it can lead to fiscal trouble for the economy in coming years. 4. 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. 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