Pest Analysis (Air Asia) Essay

1772 Words Nov 29th, 2010 8 Pages
PEST Analysis is the Political, Economic, Social culture and Technology analysis that a company does to determine the overall business environment. A PEST analysis is a look at the external environment of a company or a business that plays an important role in managing and decision making of a company. It is crucial for a company to consider its environment before relating with the public or customers. The PEST analysis examines the impact of each of the factor on the company. Thus, political factor considers the impact of legislatives changes, stability of the economy and event that related with the government and politics that may affect the business. Influence of economy, such as interest rate, stability of economy,
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This can be seen in the reliability of the different aviation’s in many others countries towards AirAsia. This is also due to the branding of AirAsia in South East Asia. Branding and trends are important for an organization such as AirAsia to promote their services. A fact that AirAsia is not just a profit making company but a good branding and innovative company was proven when AirAsia launched a campaign in November 2009 “1 Million Free Seats” and has promptly set a new world record with the number of seats that were grabbed within 24hours 402,222 seats. The response demonstrates the power of branding, and the attraction of AirAsia as a value airline.

Technology Analysis
Technology factors in one of the major reason of the growth of AirAsia. Well managed ticketing system and e-ticketing has lowered distribution costs thus, eliminating travel agent fees. AirAsia has used the full potential of the technology by connecting to the customers via internet. The major sale made by AirAsia is via internet. This can be seen from the AirAsia’s 2009 financial statement 76% of sales are made via internet well use of networking has been a successful factor on managing the sales, more over advertising their airline has made a difference in the Asian Airlines. Due to major growth in technology recently airline industry has develop ways on how to reduce the cost of travelling by introducing Airbus. AirAsia has the youngest fleet in

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