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. MAS has pursued several strategies and established strategic alliances with other organizations to gain competitive advantage. The remaining section under "Strength" is available only in the 'Complete Report' on purchase. - Threat of Terrorist Attacks We believe in the world of post 9/11, corporations such as Khazanah Mas's have to live with operating under the shadow of a terrorist attack. Academia.edu no longer supports Internet Explorer. The number of passengers may decrease while the cost of raw materials may increase. Do you want us to design a market survey or write a market research report as per your specific requirements? Journify | Home - https://journify.malaysiaairlines.com/content/journify/my/en/home.html, 4. 2. Malaysia Airlines is also exploring carbon friendly technologies that are available at London Heathrow such as utilizing electrical ground power to electric pushback. Some of the political factors are governance system, democracy & institutions, military coup chances, probability of armed conflict, law and order in market etc. Malaysia Airlines Berhad (MAB) is a flag carrier airline based in Sepang, Malaysia. PESTEL ANALYSIS FOR MALAYSIAN AIRLINES: PESTEL refers to political, economic, social, technological, environmental and legal factors. The BP Healthcare and Enrich by Malaysia Airlines partnership cares for all Malaysians wellbeing - https://www.malaysiakini.com/announcement/568903, 3. The three inter-related environments are industry environment in which the company operates in, the geographic market or country in which company operates, and wider socio economic / macro environment. Khazanah Mas's should build a strategy that can integrate societal values, infrastructure, and Khazanah Mas's business model. PESTLE analysis for Malaysia airlines is as follows: Political Size of government budgets: both local government and national government budgets are not suitable for performing airline business in Malaysia. . They may get stuck in legal proceedings. 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. Subsidiaries, Partnerships and Collaborations Report. This report is shared in order to give you an idea of what the complete Company Overview Report will cover after purchase. Attitude towards immigration has come under sharp focus. It may lead the companies to lower their prices, and as a result, thousands can lose their job. However, the factors like association with entrepreneurship related activities at university level, parents' encouragement and role models from business community are significant in motivating the students towards starting their own business. 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 . Please note that you agree to receive email updates from us on our new reports and solutions. The Industrial Organization (I/O) approach advocates that for sustainable competitive advantage external factors are as important as internal factors of the Mas Malaysia. - Types of Immigration & Attitude towards Immigrants Given the latest developments such as Brexit and Immigrant detention on Southern border of United States. Available at: https://notesmatic.com/airlines-industry-pestel/ (Accessed 21 June 2021). 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. - Price Fluctuations in both Local and International Markets Compare to the level of quantitative easing in last decade the prices of Khazanah Mas's products and prices of overall products have remained sticky in the US market. . It is an acronym for political, economic, social, technological, environmental and legal factors that shape the macro business environment. Malaysian Airlines was subject to litigation due to missing passengers, 1. But often in emerging countries these agencies delay the process as a tactic to extract bribes. Malaysia Airlines reported a Net Loss of Tax of RM433 million in 2012 compared to a Net Loss of RM2.52 billion registered for the 12 months ended 31 December 2011. One way to start is by closely mapping the changes in consumer buying behavior and emerging value proposition. SpendEdge. In case you need the complete report please purchase using the buy options displayed. 'PESTLE Analysis of Airline Industry | Marketing Tutor', Marketing Tutor, [online]. Some of the economic factors that Khazanah Mas's should evaluate both in the present market and one in which it wants to enter are inflation rate, GDP growth rate, disposable income level etc. Malaysia Airlines Berhad SWOT and PESTLE analysis has been conducted by Muskan Arya and reviewed by senior analysts from Barakaat Consulting. Everything in desktop + Templates Community, Join 2023 Edraw Special Sales. They need to upgrade continuously and incorporate the green flight ideas as much as possible. Get 22% Off before it's gone >>, https://pestleanalysis.com/pest-analysis-for-airline-industry/, https://www.managementstudyguide.com/pestle-analysis-of-global-aviation-industry.html, https://notesmatic.com/airlines-industry-pestel/, https://www.marketingtutor.net/airline-industry-pestle-analysis/, https://www.spendedge.com/casestudy/pestle-analysis-of-airline-industry, The Complete Guide To Understand IDEF Diagram. This can help Mas Malaysia to bring in more transparency and make supply chain more flexible. - Independence of Judiciary and Relative Influence of Government The judiciary independence often reflect both strength and credibility of the institutions in the country. A PESTEL framework was used to analyze macro environment of aviation industry. The prudent policy should be to take insurance and other types of hedging instruments to mitigate the losses occurring because of the terrorist attacks. As population is ageing it will require less tech intensive products. - Level of Social Concerns & Awareness in Society Higher level of social concerns in the society often result higher consumer activism and pressure from non-governmental organizations, & pressure groups. This can help Khazanah Mas's to bring in more transparency and make supply chain more flexible. Civil society groups are influential not only in policy making but also in building a society wide narrative. Neeraj Pandey and Gaganpreet Singh are affiliated with National Institute of Industrial Engineering (NITIE). If there are airline accidents, and if that is related to the companys carelessness, their business may get severely affected. The empirical study has been undertaken focusing on the undergraduate students with sample size of 108 selected mainly from Ahmedabad and Gandhinagar as both the districts are having many institutes offering education in different streams. 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. A keen eye on the security of passengers and technical superiority can help the airline industry concerning their business expansion. 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. It can harm their image and have some negative impact on their business. The bond rating of national government is investment grade. At EMBA PRO, Available at: https://www.marketingtutor.net/airline-industry-pestle-analysis/ (Accessed 21 June 2021). USA has avoided the European Union style stagnant economy on the back of slightly higher birth rate and higher level of immigration. Strategy planning process often requires five steps This report contains the table contents only. Feel free to connect with us if you need business research. The trades as well as all the factors are interrelated. It is projected that every year around 6 to 8 million youth will enter the labour force each year for coming ten years. This indicates that there is a pressing need to effectively implement the system which can absorb the youth in profession. Importance of PESTEL Analysis in Strategy Management & Planning Process Strategy planning process often requires five steps - 1. But this strategy entails risks when interest rate will go up. Reach thousands of academicians and corporates. Analyze the Khazanah Mas's external competitive environment to identify opportunities and threats. Pestle analysis assesses the extensive social trends that affect the industries and determines the present and future developments that will outline the micro-environments of industry sector. - Nature of Social Contract between Government & Society Before entering into a market Khazanah Mas's needs to understand the nature of social contract between government and society. - 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. As of early 2021, the MAB has around 12,000 employees in 53 cities. The bond rating of national government is investment grade. However, we may send you emails on our new reports and solutions. Execution of the strategy and building a feedback loop, using which managers at Khazanah Mas's can fine tune processes and strategies going forward. It can enable Mas Malaysia to hire skilled workforce at competitive salaries. Enter the email address you signed up with and we'll email you a reset link. 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. It has affected the airline industry to a certain level. SKIREC Publication- UGC Approved Journals. Available at: https://www.managementstudyguide.com/pestle-analysis-of-global-aviation-industry.html (Accessed 16 June 2021). The company needs to set a research team that can work on creating a more environment-friendly aircraft. Malaysian Hospitality is world renowned, and Malaysia Airlines hospitality and services are world class, with its superior luxury and business class travel, Golden Lounge, In-flight offerings such as movies, TV, games, music, tasty in-flight meals and duty-free shopping. Experience economy is one of the fastest growing segments both among millennials and among baby-boomers. The political factors play a huge role in not only investment decision by transnational corporations but also by companies such as Mas Malaysia. - 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. About us - https://www.malaysiaairlines.com/my/en/about-us.html, 2. In 2021, the company was awarded with COVID-19 7-Star Rating by airlineratings.com 2020. Study of these factors will help to understand the perspective of youth towards entrepreneurship. The PESTEL analysis of the airline companies can show how the external factors have affected them. Indian IT professionals are in great demand in India as well as in abroad. Both the airlines are leveraging each others strengths to improve customers travel experiences. Khazanah Mas's should have capabilities to navigate under this hyper sensitive environment. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. - Threat of Terrorist Attacks We believe in the world of post 9/11, corporations such as Mas Malaysia have to live with operating under the shadow of a terrorist attack. For example, if there are cases of employee harassment or passenger mistreatment, those events can create a deep impact on their business. we specialize at providing professional PESTEL analysis & other strategic management MBA resources. In the United Kingdom, due to Heathrows long runway, Malaysia Airlines pilots use idle reverse thrust power while stopping the aircraft allowing for 18KG of fuel to be saved per landing, which over the course of a month reduces approximately 3,420KG of carbon dioxide from being emitted. - 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. India got its first airline in 1932. 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. This report is shared in order to give you an idea of what the complete Technology Landscape and Outlook Report will cover after purchase. This report provides a PESTLE analysis of both countries for British Airways, which expresses all the factors that are essential to a business's macro environment (Moore & Taylor, 2021). It can help them to offer a safe and comfortable service. Mas Malaysia can leverage this trend by expanding its product range and targeting new customers. 3. It can lead to uncertainty and suppression of consumption in both short term and long term. - 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. The rules help to protect the environment and to ensure the safety of the passengers. This report is shared in order to give you an idea of what the complete Value Chain Analysis Report will cover after purchase. It will help them to improve the service and can make an impression. 'PESTLE Analysis | Generating Better Profit Margin for an Airline Industry', PESTLE Analysis, [online]. The number of passengers may decrease while the cost of raw materials may increase. Mas Malaysia should assess to what level the local market is prepared to roll out the 5G connectivity. The research finding has revealed that factors like age, gender, family income, entrepreneurship course etc. - International Trade & Other Treaties The country has a good record of adhering to international treaties it has done with various global partners. - Size of Government Budgets both Local Governments and National Government The government at both national level and local levels are running deficit budgets which is boosting growth in the short term but may lead to increase in inflation over medium term. Grow your business. - 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. Customized Solutions This report is shared in order to give you an idea of what the complete Regulatory Outlook Report will cover after purchase. The PESTLE analysis for Malaysia Airlines is presented below in a table followed by the detailed analysis report. In highly hierarchical societies the power of decision making often reside at the top. - Power Structure in Society Khazanah Mas's should carefully analyze both - What is the power structure in the society? - 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. For example Trump not standing by US commitments created an environment of uncertainty. For international flights, the regulations are strict, and this situation may lead an airline to push for more amenities to keep up with the competitors. - Unrest within the Country & Chances of Civil Unrest We dont think that Khazanah Mas's business operations are facing any dangers from any kind of civil unrest or internal militant operations in the country. This can help Khazanah Mas's in numerous decisions such as plant location, product development, and pricing strategy. PESTLE Analysis of Airline Industry. - Level of Acceptance of Technology in the Society Khazanah Mas's has to figure out the level of technology acceptance in the society before launching new products. It is very crucial to do the PESTEL analysis. Choosing the vision, mission and the reason of existence for Khazanah Mas's. 1211 Words; . Analyze the Mas Malaysia external competitive environment to identify opportunities and threats. Airlines are reducing their carbon emissions in response to climate change risks: Malaysia Airlines has promoted efforts in reduction of carbon emissions through initiatives such as CORSIA, Carbon Offsetting and Reduction Scheme for International Aviation set by the ICAO in 2016. The study results to know the human resource techniques among hotels in a better way and impact on their performance in provide excellent guest satisfaction. The airline which has been recently renamed as Malaysia Airline Berhad and operates flights to Asia, Australasia, Africa, the Americas, Europe, and the Middle East. This will help in better predicting the environment policy of the country. Are you looking for a report which is not covered on our website? The airline delivers premium services and offers superiors connectivity to 1000 locations across 150+ countries. The government of each party has adhered to the treaties done by previous governments, so there is a consistency in both rule of law and regulations. - 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. 2. Importance of PESTEL Analysis in Strategy Management & Planning Process Strategy planning process often requires five steps - 1. and its background in Malaysia, and a PESTEL analysis and Porter's Five Force analysis will also be included in this written assignment. 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. It can add to the clear image of any aviation company. Currently, about 11.3 million people are working in the airline industry, and it also has the potential to create more jobs in the future due to its growth. The airline is supported by Khazanah Group and the Malaysian Government as well. Attracting the talented employees is not a problem with IT Industry but to retain employees is the biggest challenge. Another reboot can Malaysia Airlines get it right this time - https://www.theedgemarkets.com/article/another-reboot-%E2%80%94-can-malaysia-airlines-get-it-right-time. - Per Capita and National Carbon Emission What is the per capita carbon emission of the country and what is the overall level of carbon emissions of the country. Khazanah Mas's can leverage this trend to expand the market beyond its traditional customers by employing a differentiated marketing campaign. PESTLE analysis PEST analysis (Political, Economic, Social and Technological analysis) describes a framework of macro-environmental factors used in the environmental scanning components of strategic management. . These paper overviews several theoretical approaches to explore the strategic marketing planning process of the Starbucks Malaysia. - Political Governance System Based on the information provided in the Malaysia Airlines: The Marketing Challenge after MH370 and MH17 case study, it seems that the country have a stable political system. Legal factors often govern conditions to enter the market, laws to operate in the market, and procedure to resolve any dispute with other stakeholders. For example it has been extremely difficult for US companies to enter UK health market as UK health system is a nationalized system and everything goes through contracts at national level. Cathay Pacific, Iberia, Japan Airlines, Qantas, Malaysia, Airlines Qatar Airways, Royal Air Marco, S7 Airlines, Royal Jordanian, SriLankan Airlines. Established player in Asian region catering to large number of destinations, 1. This is in addition to taxiing the aircraft with one engine instead of two after landing, which can further save as much as 50KG of fuel or 158KG of carbon dioxide per flight. This report is shared in order to give you an idea of what the complete Segmentation, Targeting and Positioning (STP) Analysis Report will cover after purchase. It will help Khazanah Mas's in both developing environmentally friendly products and thwarting PR stumble blocks. Internal emergency, war, or political instability can hinder the business of any airline company. This report is shared in order to give you an idea of what the complete Key News and Events Report will cover after purchase. The gender composition of labor market is a good indicator of disposal income of household, priorities of the households, and related needs. 2. These four external environment forces are political/legal segment, economics segment, sociocultural segment, and technological segment. Khazanah Mas's should assess to what level the local market is prepared to roll out the 5G connectivity. The airline may lose customers for the lack of security to those parts. Singapore Airlines Pestel Analysis. - Corporate Social Responsibilities Culture Are Mas Malaysia present CSR efforts applicable in the new market or does it needs to have new initiative to cater to the prospective market. You can use the following in your reference section in order to give credit to the source. 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. - 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. Strong partnerships with other airlines, groups and companies: Malaysia Airlines has expanded and improved its operation through various partnerships in recent years. Malaysian Airlines was subject to litigation due to missing airplane with passengers resulting in loss of brand and consumer confidence, 1. Malaysia Airlines: The Marketing Challenge after MH370 and MH17 case study PESTEL analysis includes macro environment factors that impact the overall business environment Political, Economic, Social, Technological, Environmental, and Legal factors. Key Performance Indicators (KPI's) Report. The prudent policy should be to take insurance and other types of hedging instruments to mitigate the losses occurring because of the terrorist attacks. 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. These measures should consist of legal, institutional and administrative dimensions. In case you want this report emailed straight into your email inbox, kindly share your details below. - 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. Mas Malaysia should have capabilities to navigate under this hyper sensitive environment. 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. 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. 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. To roll out the 5G connectivity Industry | Marketing Tutor ', PESTLE for! Through various partnerships in recent years to lower their prices, and pricing.... Khazanah Mas 's should carefully analyze both - what is the biggest challenge of disposal income of household, of! And thwarting PR stumble blocks by airlineratings.com 2020 commitments created an environment of aviation Industry Asian region catering to number! Trump not standing by us commitments created an environment of uncertainty talented employees the! To gain competitive advantage 7-Star rating by airlineratings.com 2020 Malaysia can leverage trend... Remaining section under `` Strength '' is available only in the 'Complete report ' on purchase into! Should assess to what level the local market is prepared to roll the! The society upgrade continuously and incorporate the green flight ideas as much as possible tech products! You signed up with and we 'll email you a reset link changes in consumer buying and! 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