Unit 1 P6 Essay

2855 Words Apr 25th, 2015 12 Pages
How PEST factors impact upon spice jet and their stakeholders India | Stakeholders | Political:
National Security- this means that the airport system would slow down as they are going to have to do more checks to reduce immigrants. Freedom to determine fairs- The company determine their own fairs for customers to get a better deal. Up gradation of airport infrastructure- Because the planes cannot fly to certain places because the runway is not up to standards. Level playing field- Everyone’s got the same chance. Limited PEST Factors:Bureaucracy

International Routes after 5 years

No clear policy for state carriers | Customers: This would have an effect on the people that fly with SpiceJet as they don’t want to be waiting for a long
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Local & National communities: If the other competitors were to realise that customers are not flying with SpiceJet anymore they would start doing more advertisement so that they can start getting more customers this would be ineffective to SpiceJet because they would have then completely lost their customers and would lose out in a big amount of profit. | Economic: Income for salaried class up 14-16%

GDP growth of 8% - 9% in the last 5 years
Nil import tariff on Aircraft

Seat inventory Pricing
Oligopoly structure of the market – Customer View Limited PEST Factors:Tax & Tariff 8% import duty and 25%-33% state sales tax on ATF

Pricing Strategy dependent on individual firms behaviour
International Petroleum Prices | Customers: The customers wouldn’t want to pay more money for seating. So if the customers don’t like the way they are being treated within the flight or through assistant when in the airport more customers would not fly with SpiceJet anymore which means the company would then lose money. Employees: Employees may have a risk on losing their jobs because of the GDP growth of 8%-9%. This means that the owners may have to do cut backs on the employees

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