P.E.S.T.E.L
PESTEL analysis are performed to evaluate the macro-environment, and how it influences the success of the business. Political, economic, social, technological, environmental, and legal factors are the categories that are used to break down the industry that …show more content…
This is an industry that is prone to very high levels of competition. First off, it’s an industry that sees more decline than growth, so many of the companies are well established. Probably the biggest reason this industry has such fierce competition is because of its high fixed costs and low return. This requires companies to be creative with how they can make profits, such as last-minute upgrades, food and beverages, or any other amenities on board.
Conclusion
After analyzing the airline industry and seeing how profits are made, different regulations provided, and fierce competition, it can be argued that this is an unattractive industry. It is almost unrealistic to enter the market, and if one can do so successfully, it will be years before they ever see a positive gain. In five years, this industry will probably be looking towards making travel more efficient and at a more cost-effective price. Planes will be working towards traveling further distances while using less fuel, and maybe even further ahead, using alternative energies to operate. Using alternative energies to operate would eliminate the fuel cost, dramatically bringing down the cost of